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TD Cowen analysts have reaffirmed their Buy rating and $33.00 price target for Opera stock (NASDAQ: NASDAQ:OPRA), also highlighting the company as Europe Best Ideas. The endorsement comes as Opera focuses on growing its premium user base in developed markets, which is expected to drive sustainable and profitable growth.
Opera’s strategic emphasis on attracting higher-value users is seen as a key factor in its potential for continued success. The company’s use of AI-driven enhancements and expansion into the iOS market is believed to be strengthening user engagement and monetization opportunities. This approach is already showing results, with revenue growing at 21.12% over the last twelve months. This momentum is anticipated to support a multi-year growth rate exceeding 15%.
The financial health of Opera is also a subject of positive note, with InvestingPro data confirming minimal debt (debt-to-equity ratio of 0.01) and strong liquidity (current ratio of 2.29). This positions Opera favorably in terms of financial flexibility and stability, earning a "GREAT" financial health score. Additionally, the company’s rising free cash flow (FCF) and disciplined strategy for returning capital to shareholders are seen as promising indicators for accelerating returns to investors.
Opera’s commitment to these strategic financial practices is expected to further solidify its investment appeal. The company’s approach aligns with TD Cowen’s outlook for Opera, reinforcing the firm’s confidence in the stock’s potential for growth and the anticipated benefits for shareholders. For deeper insights into Opera’s valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 6 additional ProTips and extensive financial metrics.
In other recent news, Opera Limited reported strong fourth-quarter results, with revenue reaching $145.83 million, surpassing analyst projections of $137.66 million and marking a 29% year-over-year increase. The company also posted adjusted earnings per share of $0.28, exceeding the consensus estimate of $0.25. Advertising revenue, which constituted 64% of Opera’s total revenue, grew by 38% year-over-year to $93.3 million, while search revenue increased by 17% to $52.3 million. Looking forward, Opera forecasts first-quarter 2025 revenue between $130 million and $133 million, above the $121.4 million consensus, and expects full-year 2025 revenue to be between $555 million and $570 million, topping analyst estimates.
In response to these results, TD Cowen raised its price target for Opera shares to $33, citing the company’s exceptional performance in advertising and Average Revenue Per User (ARPU) growth, particularly in Western markets. Goldman Sachs also increased its price target for Opera to $26, highlighting the company’s solid revenue momentum and opportunities in digital advertising. Analysts from both firms maintained a Buy rating on the stock, reflecting confidence in Opera’s strategic initiatives and growth prospects. Opera’s strategic focus on audience monetization and leveraging artificial intelligence for ad targeting has been noted as a key factor in its continued success.
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