Opera initiated with bullish view at B. Riley, here’s why

B. Riley analyst Naved Khan initiated coverage of Opera with a Buy rating and $20 price target. The analyst believes Opera’s “sizable and engaged” user base for its proprietary browser and news products uniquely positions the company to monetize these audiences, primarily through search and display advertising. The company’s moves to extend its audience and available inventory through real-time bidding and to increase monthly active users for its GX gaming browser position it for sustained sales growth, with leverage on fixed costs likely driving margin expansion, the analyst tells investors in a research note.