These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, Piper Sandler initiated coverage of Opera Limited (NASDAQ: NASDAQ:OPRA) shares with an Overweight rating and a price target of $25.00. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.56/5, with impressive year-over-year returns of 72%. The firm’s analysts highlighted Opera’s distinct market position as a web browser, its growth in user segments with higher Average Revenue Per User (ARPU), and expansion in Western markets. They also pointed to the company’s development of first-party and third-party advertising products as a positive factor. This growth strategy appears to be working, with InvestingPro data showing revenue growth of 17.8% in the last twelve months. InvestingPro subscribers can access 8 more key tips about Opera’s growth potential.
The analysts at Piper Sandler underscored the strength of the digital advertising environment and Opera’s increasing share in its focus verticals. They identified several potential catalysts for Opera in 2025, including the anticipated resolution of regulatory matters involving Google (NASDAQ:GOOGL), the expansion of Opera’s iOS application, and the renewal of its search agreement.
Piper Sandler’s analysts find Opera’s valuation attractive, citing it as approximately 9 times the projected 2026 EBITDA for a company that is expected to see an approximate 20% compound annual growth rate in EBITDA over a three-year period through 2026. This aligns with current InvestingPro metrics showing a P/E ratio of 9.93 and strong balance sheet fundamentals, with more cash than debt. Get the complete financial picture with Opera’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In their commentary, the analysts stated, "We initiate OPRA with an OW rating and $25 PT. We like the story given OPRA’s unique position as a browser, growth in higher ARPU user segments and Western Markets, and ramping of new 1P and 3P ad products. The Digital Ad backdrop is strong and is gaining share in focus verticals."
The analysts concluded that the company’s stock is compellingly valued, which, combined with the positive outlook for digital advertising and the identified catalysts, led to the initiation of coverage with an Overweight rating and a $25 price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.