OPRA - Opera Stock: Consider Buying This Dip Again

2024-07-30 09:21:46 ET

Summary

• Opera Limited stock has seen a 6.74% total return since my last recommendation, slightly below the S&P 500. I think the stock's current dip is a buying opportunity.
• As I see it, Opera's unit economics and fundamentals remain solid, with multiple prospects going forward.
• Opera's strong cash flow generation, growing user base, and strategic investments position the company for continued growth and potential expansion in sales.
• The market predicts a decline in Opera's P/E ratio, while EPS CAGR remains above 16%. By FY2025, I think the stock should trade at 15x earnings. My price target is 29% higher than today's price.
• I reiterate my previous "Buy" rating for OPRA stock.

Intro & Thesis Update

I last wrote about Opera Limited ( OPRA ) in mid-February 2024 and noted that the stock had become cheaper than when I wrote about it in November 2023 . OPRA has since managed to rise to $17/sh. (+47%), but then fell back to $11-12, so the stock's total return since my recommendation today is 6.74% (thanks to the dividend payments), which is slightly below that of the S&P 500 ( SPX ) ( SPY ):

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