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.