11:02 AM EDT, 05/28/2024 (MT Newswires) -- Viking Holdings ( VIK ) new ship orders should increase top-line growth with current scale advantages from "harnessing" the firm's direct marketing model, Morgan Stanley said in a note Tuesday.

The company's direct marketing model results in margin expansion and "stronger" bottom-line growth, the note added.

"Moreover, high operating leverage and macro sensitivity create a wide bull/bear sensitivity," the report said.

The cruise operator has a balanced portfolio among river and ocean, but it will shift to ocean exposure "as greater capacity is added to that segment," according to the note.

Morgan Stanley also said that some key positives from the company's operations include more than 50% of the North American outbound river market share, increasing customer demographics, long bookings, direct distribution, and others.

Morgan Stanley initiated Viking's coverage at equalweight rating and $31 price target.

Price: 29.96, Change: +0.28, Percent Change: +0.94