Piper Sandler reiterates Opera stock rating on e-commerce, AI growth

Published 13/06/2025, 14:06
Piper Sandler reiterates Opera stock rating on e-commerce, AI growth

Piper Sandler maintained its Overweight rating and $26.00 price target on Opera (NASDAQ:OPRA) following meetings with company executives this week. According to InvestingPro analysis, Opera currently trades below its Fair Value, with a "GREAT" financial health score of 3.39 out of 4.

The research firm cited Opera’s continued strong execution in e-commerce and artificial intelligence initiatives as key factors supporting the rating. Opera reported revenue acceleration to 40% year-over-year growth in the first quarter of 2025, building on its impressive 26.68% revenue growth over the last twelve months. Want deeper insights? Access Opera’s comprehensive Pro Research Report, available exclusively on InvestingPro.

Opera’s e-commerce segment demonstrated particularly robust performance, achieving over 100% year-over-year growth. The company has also focused on scaling users in Western markets while maintaining its digital advertising advantage. This growth is supported by strong fundamentals, including a healthy current ratio of 2.17 and minimal debt, with the company holding more cash than debt on its balance sheet.

During the meetings with Opera CFO Frode Jacobsen and VP of IR Matthew Wolfson, investors primarily discussed growth drivers in advertising, potential browser competition with large language model providers, the rapid e-commerce expansion, first-quarter search slowdown, and AI strategy.

Piper Sandler expressed continued bullishness on Opera’s prospects, specifically highlighting the Opera browser as "a unique ad surface within Digital Advertising" that positions the company to grow significantly faster than its digital advertising peers.

In other recent news, Opera Limited reported robust first-quarter results that surpassed analyst expectations. The company saw a significant revenue increase of 40% year-over-year, reaching $142.7 million, which was notably higher than the anticipated $121.45 million. Adjusted earnings per share were $0.27, exceeding the expected $0.22. Opera’s advertising revenue grew by 63% to $95.6 million, making up 67% of the total revenue, while search revenue rose 8% to $46.6 million. Following these results, Opera has raised its full-year 2025 revenue guidance to a range of $567-582 million, surpassing analyst estimates of $566.6 million. For the second quarter, the company projects revenue between $134 million and $138 million. The company reported 293 million average monthly active users, with a 45% year-over-year increase in annualized average revenue per user to $1.94. Opera’s adjusted EBITDA saw a year-over-year growth of 29% to $32.3 million, with a 23% margin. The company concluded the quarter with $103.5 million in cash and cash equivalents.

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