With Covid-19 disruptions within the rearview mirror and the cruise industry back on the right track, one other cruise line has taken a step towards possibly going public. Viking Holdings said last week it submitted a draft registration statement with the U.S. Securities and Exchange Commission regarding a proposed initial public offering. The move comes at a time when the IPO market is predicted to open back up after slumping in 2022 amid the Federal Reserve ‘s rate hikes. Melius Research believes a Viking IPO makes rational sense. “The cruise industry is hitting its stride , with demand roaring back and accelerating, but there’s further upside as costs moderate and balance sheets improve,” analyst Conor Cunningham wrote in a note Wednesday. Cruise lines were the last within the travel industry to recuperate from the Covid pandemic. Norwegian Cruise Line , whose recovery has lagged its rivals, reported on Tuesday its first profitable 12 months since 2019 . While shares of Norwegian, Royal Caribbean and Carnival are all down up to now this 12 months, that they had a blockbuster 2023. Royal Caribbean surged nearly 162% last 12 months, while Carnival rallied 130% and Norwegian gained about 64%. Despite concern a few peak in demand, the info doesn’t support a slowdown, Cunningham said. “What the industry really needs is fresh investor eyes and a possible incremental buyer. A Viking IPO could bring each,” he said. The analyst has buy rankings Royal Caribbean, Carnival and Norwegian. He expects Norwegian to rise 12% over the subsequent 12 months, based on his $21 price goal. As for Carnival and Royal Caribbean, the analyst sees greater than 25% upside from Tuesday’s close. He has a price goal of $20 on Carnival and a forecast of $155 on Royal Caribbean. This can be the most recent sign of an IPO market that would make a comeback . In 2023 and 2022 combined, only 92 corporations went public, well below the 311 seen in 2021. Yr thus far already, there have been greater than 30 initial public offerings.