Opera’s Stock Projected for Strong Recovery Amid Growing Earnings

Opera (NASDAQ: OPRA) has experienced fluctuating share performance in 2025, dropping 8% despite strong quarterly results. Analysts predict a turnaround as they foresee the stock climbing in value.

Analysts Target $25 for Opera Stock

The seven analysts tracking Opera set a 12-month price target of $25, suggesting a potential 44% upside from current prices, all rating the stock as a buy. This optimism stems from the company’s impressive growth and favorable valuation.

Quarterly Performance Exceeds Expectations

On April 28, Opera reported a 40% year-over-year revenue increase and a 35% rise in adjusted earnings. This followed a year where revenues rose by only 17%, marking a notable rebound.

The company has adjusted its full-year revenue growth guidance up by three points to a midpoint estimate of $575 million. Enhanced monetization strategies have allowed Opera to benefit from increased advertising spending on its Opera Ads platform, reaching 293 million monthly active users.

Advertising Revenue and User Growth

Opera has diversified its advertising models, incorporating real-time data and premium display areas. Consequently, ad revenue increased by 63%, constituting two-thirds of total revenue last quarter. Alongside this, average revenue per user (ARPU) grew by 45% year-over-year.

Looking ahead, Opera aims to integrate artificial intelligence into its browsers, providing users with assistance in online shopping and other tasks. This capability could lead to more advertising deals and increased commission revenue.

Future Earnings Projections

Analysts forecast an 18% increase in earnings per share to $1.14 this year, accelerating to 23% in the following year. The ongoing integration of AI is expected to further boost advertiser investments in the platform.

Valuation and Price Potential

Currently trading at 18.5 times earnings, Opera is priced lower than the Nasdaq-100 index’s earnings multiple of 31. If valuations align with the index, the stock price could reach $35, nearly doubling from current levels.

Investment Considerations

Prospective investors should weigh the potential of Opera, acknowledging it was not included in a recent list of top recommended stocks. Historical returns from earlier recommendations highlight the potential for significant gains, although past performance is not indicative of future results.

Harsh Chauhan does not hold positions in the mentioned stocks. The Motley Fool has no positions in the discussed stocks.

The views expressed are those of the author and do not necessarily reflect the views of Nasdaq, Inc.