Citi keeps Buy rating on Viking Holdings amid river disruption

Citi analyst James Hardiman reiterated a Buy rating and $113.00 price target on Viking Holdings (NYSE: VIK), according to a research note, as the company faces disruptions to its river cruise operations due to low water levels.

Hardiman noted that as of Aug. 31, seven of the eight gauge stations tracked across Viking's Rhine-Danube river corridor remain below operational risk levels, with the combined system sitting near the bottom 1-2% of historical observations dating back to 2000. The weighted average deficit versus risk levels stands at 19 centimeters.

Since Viking reported second-quarter earnings on Aug. 19, seven of eight monitored stations have shown improvement, with the weighted-average index rising 41 centimeters. The analyst noted the Rhine appears to be improving while the Danube remains challenged.

Hardiman said 2026 conditions are tracking as more severe than either 2018 or 2022 in terms of intensity, though the disruption has not yet matched the persistence seen in 2018. The analyst's base case assumes conditions closer to 2022 than 2018, with intermittent improvement and continued volatility through September and into October.

The analyst lowered earnings estimates due to an increase in the disruption assumption, though the 2027 estimate remains modestly ahead of consensus. Viking Holdings shares closed at $85.03, reflecting a roughly 20% decline on a month-over-month basis.

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