Goldman Sachs Raises Opera Limited (NASDAQ:OPRA) Price Target to $19.50 Amid Strong Q2 Earnings: Buy Rating Maintained
Goldman Sachs recently adjusted its outlook on Opera Limited (NASDAQ:OPRA), increasing the price target to $19.50 from $17.50 while affirming a Buy rating on the stock. This adjustment comes in the wake of Opera's impressive second-quarter earnings report for 2024, which showcased significant performance enhancements.
Key highlights from Opera's financial update include surpassing expectations in both top-line revenue and EBITDA. The company's strategic focus on attracting higher ARPU segments and continued investments in growth initiatives like marketing have been paying off.
Furthermore, positive developments in Europe following the implementation of the Digital Markets Act (DMA) are expected to drive user growth and advertising demand in the long run. Opera's advancements in artificial intelligence, particularly with the Aria assistant and integration of third-party AI models, position it favorably in the competitive landscape.
Goldman Sachs anticipates that Opera will benefit from long-term trends in digital advertising and geographic/product mix shifts, leading to sustained double-digit growth. The recent launch of the AI-powered Opera One browser for iOS devices and plans to integrate on-device AI capabilities further underscore Opera's commitment to innovation and user experience.
TD Cowen also maintains a Buy rating on Opera with a $25.00 price target, citing the company's focus on affluent users and AI integration as drivers for revenue growth. Opera's solid financial position, marked by debt-free status and strong free cash flow growth, indicates potential for increased shareholder returns.
InvestingPro data aligns with Goldman Sachs' positive outlook, highlighting Opera's market cap of $1.28 billion and attractive P/E ratio of 7.19. The company's robust revenue growth, financial stability, and positive market sentiment further reinforce its growth potential.
Overall, Opera's strategic initiatives, financial health, and focus on innovation position it as a compelling investment opportunity. Investors looking for a growth stock with solid fundamentals and innovative technology may find Opera Limited (NASDAQ:OPRA) worth considering for their portfolio.