OPRA - Opera Looks Fully Priced Before Q1 Earnings Despite Its 11x Forward EV/EBITDA

2024-04-18 14:51:28 ET

Summary

• Opera has demonstrated operating income growth and a projected 5.3% dividend yield, but risks still exist.
• The company's growth initiatives and product launches have boosted revenue and user base expansion.
• Valuation multiples remain compressed due to concentration risks and dependence on Google, but the company is actively working to reduce these risks.
• Despite its 11x forward EV/EBITDA, I estimate ~4-5% downside due to certain headwinds.

Investment Thesis

Opera ( OPRA ) seems to have been navigating through a sort of renaissance in the past twelve months or so, and the recent DMA regulation against appstore platforms should provide much-needed impetus for the company....

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