Opera Limited’s stock is setting up for a year-end run that could leave it a fresh all-time high. Although the short-interest remained high as of early August, providing a headwind for the action, it too aligns with an outlook for a rapidly rising share price, as it is sufficient for a short-covering rally or squeeze, provided a catalyst emerges.
The catalyst will likely come with the Q3 earnings release, which is scheduled for late November.
The company raised its guidance at the end of Q2, and outperformance is likely.
Regarding the short interest, was 16% short in early August. The interest was down sequentially but trending near record levels, where it has been for nearly two years, and is unlikely to have changed significantly since. Although the Q2 release was better than expected, it was not sufficient to catalyze short-covering, leaving the market in limbo until the subsequent report is released.
Analysts and Institutional Flows Provide Support for Opera’s Stock Price
Neither the analysts nor the institutional trends are robust, but both reveal interest, bullish sentiment and improving market support. The analysts are bullish, with coverage rising by 200% over the preceding 12 months to six. Six is not a large number of analysts, but it is sufficient to provide a reasonable conviction in the sentiment and price trends.
The sentiment is pegged at Buy and has been firm for over a year, with 100% of the analysts rating it at that level. The price target is also solid, rising by 15% in the last year, predicting a 50% upside for the stock. The most recent update was issued by Wedbush, which reaffirmed an Outperform rating.
Institutional trends are less bullish, with them owning only 10% of the stock. However, the data reveal that the pace of their buying activity picked up in 2025, and buyers represent a broad sampling of the group, providing support for the share price.
Assuming this trend continues, the stock price is unlikely to fall below critical support levels, which align with an uptrend line and long-term moving average. It is likely to continue trending higher over time.
Opera Holdings: An AI-Stock Accelerating Growth, Raising Guidance
Opera Holdings had a solid quarter in Q2, accelerating growth to 30% year-over-year, approximately double the previous year’s pace. The growth was underpinned by AI, with strengths seen across core segments. The company has leaned heavily into AI, embedding it into its browser, ad products, games, and including agentic and assist tools, and it is seen in the results.
Ad revenue grew by 44%, search by 11%, with user counts up by 35% and expected to continue growing robustly.
Margin news is another area of strength. The company’s gross and operating margins contracted slightly more than expected but remained strong, driving double-digit increases in adjusted net and EBITDA margins. The critical takeaways include a 90% increase in cash flow, a 115% increase in free cash flow, and a nearly 91% FCF to adjusted EBITDA ratio, all of which are expected to remain strong in the upcoming quarters.
Opera Holding’s Dividend Makes It a Buy-and-Hold Stock
Opera Holding’s cash flow and balance sheet allow it to pay a substantial dividend while maintaining financial health, and it will likely increase over time.
The mid-year 2025 payout annualizes to nearly 5% and is running at less than 60% of the current-year earnings outlook.
The forecast is for this company to grow its earnings at a high-double-digit pace for the next decade, putting the current payout at approximately 35% of the 2030 forecasts, which is likely to be low.
Turning to the balance sheet, highlights reveal that its cash position and assets are growing while liabilities decline.
The company is in a net cash position relative to its debt and total liabilities, a fortress-like condition.