Opera: Rich Yields & High Growth Prospects - No Brainer Buy

Summary

• OPRA's robust capital appreciation and rich dividend yields justify the reiterated Buy rating, thanks to its inherent undervaluation and growing Free Cash Flow generation.
• The dip in its overall MAUs has been highly strategic as well, as observed in the growing user share from Western regions and higher ARPUs thus far.
• These developments have contributed to the growth flywheel across OPRA's advertising and search revenues, as the management raises its FY2024 guidance.
• Its discounted FWD PEG non GAAP ratio of 0.61x offers interested investors with a high growth prospect, pending the reversal in market sentiments.
• For now, investors may simply sit back and collect rich dividends prior its turnaround story.

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OPRA's Discounted Prospects Offer A Robust Dual Pronged Investment Thesis

We previously covered Opera Limited (NASDAQ:OPRA) in June 2024, discussing why we had maintained our Buy rating then, attributed to the rich dividend yields and

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.