Opera (OPRA – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Lance Vitanza from TD Cowen maintained a Buy rating on the stock and has a $33.00 price target.
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Lance Vitanza has given his Buy rating due to a combination of factors that highlight Opera’s strategic positioning and financial health. Opera’s focus on attracting higher-value users in developed markets is expected to drive sustained and profitable growth. The company’s AI-driven enhancements and expansion into iOS platforms are anticipated to boost user engagement and monetization, supporting a multi-year growth rate of over 15%.
Additionally, Opera’s financial stability is underscored by its zero-debt balance sheet, increasing free cash flow, and a disciplined capital return strategy, which are expected to enhance shareholder returns. Since 2020, Opera has successfully expanded its high-value user base in Western markets, achieving significant growth in user numbers and average revenue per user (ARPU). This has resulted in double-digit revenue growth and strong adjusted EBITDA margins, reinforcing the company’s compelling investment case.
In another report released on February 28, Lake Street also reiterated a Buy rating on the stock with a $23.00 price target.