2024-02-13 02:02:42 ET
Summary
- Opera Limited has experienced recent underperformance but remains a compelling GARP pick with underestimated growth potential.
- The company's focus on operational excellence and expansion of its user base have contributed to strong financial performance.
- Opera's balance sheet is solid, and the company has revised its revenue and adjusted EBITDA guidance upwards, demonstrating confidence in its growth trajectory.
- I estimate a growth potential for OPRA stock at around 30%, but it may appear too pessimistic. In my view, the risk-to-reward ratio in this growth story leans heavily toward the reward side.
- I'm contemplating adding Opera to my medium-term portfolio, and I suggest you consider the same after conducting your own research.
Intro & Thesis
I last wrote about Opera Limited ( OPRA ) in November 2023 and recommended readers consider buying the stock on its heavy dip when it touched $12 apiece. OPRA has since fallen to $11, so the stock's total return since my recommendation is -5.73% (thanks to the dividend payment), which is still well below that of the S&P 500 ( SPX ) ( SPY ):
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Opera Became Cheaper And Hence, More Attractive