2024-06-18 12:29:16 ET
Summary
- Opera Limited is currently priced as a value company, but I believe they can see significant growth in the next couple of years.
- Opera's ARPU has increased by an average of 8.12% per quarter, significantly driven by contributions from Western users.
- Opera holds an 8% market share of global internet users, but I believe they can take a bigger share of this market by focusing on the gaming sector.
- My DCF sensitivity analyses signals that Opera is currently very undervalued.
- I believe Opera GX has strong potential for growth, and that this product will really lift this company to new highs never seen before.
Introduction
Opera Limited ( OPRA ) has seen significant growth in its average revenue per user in the last couple of years, and I believe this growth can continue in the next couple of years as Opera focuses more and more on the gaming market. The PC gaming market is approximately 1.86 billion people , and a large percentage of that is Western users , which their advertisement partners are willing to pay for. Opera GX currently only has 30 million users , and I believe they can manage to capture bigger percentages of this market in the upcoming years. I believe Opera GX has the potential to be their big winner and give Opera exponential growth in the next couple of years. This, tied with their very attractive dividend and repurchase yield, and current valuation, I rate Opera Limited ((OPRA)) a strong buy.
Revenue
We will start with the growth in the revenues over the past years for Opera. We've got to start here with their revenue model....
Read the full article on Seeking Alpha
For further details see:
Opera Limited: Targeting The Gaming Market Unlocks Significant Opportunities