CNBC’s Jim Cramer is enthusiastic about the recent IPO of Viking Cruises, which has marked the biggest market debut of the year so far. Although the stock’s price tag is substantial, Cramer is willing to pay a premium for it, based on his belief that the company is poised for success. Viking Cruises distinguishes itself from its competitors by offering a unique experience on its ships, which are devoid of casinos and children and are specifically designed to cater to a discerning clientele. The company sets itself apart by providing voyages to niche destinations such as Iceland and Egypt, which, according to Cramer, gives Viking a competitive edge. Following its initial pricing at $24 per share, Viking Cruises commenced trading on Wednesday at $26.15 and concluded the day at $26.10. The stock continued to gain momentum on Thursday, reaching a closing price of $26.99. Cramer is particularly impressed by Viking Cruises’ margin expansion to date. Despite the company’s preliminary first-quarter results indicating a slowdown in growth since the pandemic, he maintains that the company is still “growing nicely.” While acknowledging that Viking Cruises’ balance sheet is not flawless, he notes that this is also the case with other publicly traded cruise lines. Cramer advises investors to consider purchasing the stock at its current level, even though he would prefer a price closer to its peers, which he estimates to be around $20. Nonetheless, Cramer believes Viking Cruises warrants a premium valuation due to its superior balance sheet compared to its peers, its distinctive brand, and its exclusive focus on high-end customers, a segment he anticipates will exhibit greater resilience than the mass market sector.
Jim Cramer Loves Viking Cruises’ IPO: ‘I’m Willing to Pay Up for This One’
