OPRA - Opera: Double Digit Growth Ahead - Dividends Remain Tempting

2024-03-17 11:14:26 ET

Summary

• OPRA continues to report successful monetization through Opera GX, as observed in the expanding MAUs and ARPUs over the past few quarters.
• As the browser gains traction and the platform grows, we may see OPRA report improved advertising and search revenues with massive long-term tailwinds.
• The management has also been returning the robust cash flow to shareholders, through share retirement and tempting dividend yields.
• As a result of its dual pronged returns, we are maintaining our Buy rating with a long-term price target of over $19.

We previously covered Opera Limited (NASDAQ: OPRA ) in December 2023, discussing its improved monetization trend and growing ARPU, leading to its strong financial performance in FQ3'23 and raised guidance for FY2023.

Combined with the depressed valuations and attractive dividend yields, we had reiterated our Buy rating for the stock then....

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