Key insights
- The author suggests Opera (OPRA) may be undervalued due to its low PE ratio relative to revenue and profit growth, particularly given its integration of AI and presence in the fintech sector. The author acknowledges Chinese ownership as a potential risk but believes the Norwegian headquarters mitigates reporting concerns. Overall, the author views this as a slightly bullish signal for the stock.
Opera as a company has been on my radar for some time. I also hold some speculative shares for couple of years. I use it daily for browsing and generally like the experience of the product. That being said I realise their main business is also fintech and other products aside the browser ...
They seem to be steadily growing with good margins and fast technology adoption. They are integrating AI models into every product (not investing in AI capex - but being part of the game; which is even better imo for value). The PE of 12 seems to be very low compared to revenue and net profit growth. For a profitable company in tech / fintech sector I find it interesting that the valuation is low. I'm also aware of the part Chinese ownership, but the company is still Norwegian and therefore I don't see a real threat for false reporting.
Anyway - curious to hear your thoughts. Is it a value pick? Or is there something wrong I'm not seeing :)