FMP
May 28, 2024 4:16 PM - Davit Kirakosyan
JPMorgan analysts started coverage on Viking Holdings (NYSE:VIK) with an Overweight rating and a price target of $34 on the stock.
The analysts highlighted Viking Holdings' strong position to capture multi-year market share in the growing $1.9 trillion global vacation market. Key factors include targeting the 55+ demographic, which holds 70% of US wealth and is the fastest-growing segment, a destination-focused strategy that avoids yield cannibalization and improves cost efficiency, and a scalable business model with a solid foundation, evidenced by a 51% market share in river cruises and 26% in ocean luxury cruises.
Viking's educational and destination-first focus, along with its "One Brand" marketing strategy, fosters customer loyalty, with over 60% of bookings for new products coming from past guests and repeat guest rates increasing from 26% in 2015 to approximately 51% today.
The analysts project a 15% annual revenue growth through 2026, supported by an 11% increase in capacity (compared to the industry's 4%) and conservative net yield growth of 3.6%, resulting in a 38% EBITDA margin and around 20% EBITDA dollar growth.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...