Cramer says he's willing to pay up for Viking, the biggest IPO of the year

CNBC's Jim Cramer on Thursday reviewed the IPO of Viking, a cruise line whose market debut this week was the biggest of the year so far, and said he's willing to pay up for the stock.of the year so far. And despite its hefty price tag, Cramer said he's willing to pay up for the stock.

"Even though Viking's somewhat hot start has made its stock more expensive than its cruise line peers, I am willing to pay up for this one, because I think it's going to be a winner," he said. Viking stands apart from much of the competition — its ships don't have casinos, children aren't allowed, and it specifically targets a wealthy consumer. The company offers voyages with niche destinations such as Iceland or Egypt. To Cramer, this target audience gives Viking an edge.After pricing at $24 a share, Viking started trading Wednesday at $26.15 and closed that day at $26.10. On Thursday, the stock notched more gains, closing at $26.99.

Cramer was impressed by Viking's margin expansion so far. Even though its preliminary first quarter results show growth decelerating since the pandemic, he said he thinks it's still"growing nicely." He conceded that Viking doesn't have a perfect balance sheet, but neither do the other publicly-traded cruise lines.

He said he'd recommend investors buy some stock at this level, even though he'd like the price to come down to where it's more in-line with its peers, which he estimated would be around $20. But to Cramer, Viking deserves a premium."Viking's got a cleaner balance sheet than its peers, differentiated brand, it caters exclusively to high-end customers...part of the business I expect to hold up better than the mass market side of things," he said.

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