Why Opera stock rose again today

Following the big gains after Thursday’s earnings, Opera (OPRA 11.51%) rose again on Friday. The web browser developer’s share price ended the session up 11.5 percent, according to data from S&P Global Market Intelligence.

Thanks to comments from Federal Reserve Chairman Jerome Powell suggesting that interest rate cuts are on the way, Friday was a good day for the market overall. The S&P 500 the index gained 1.1% while Nasdaq Composite the index rose by 1.4%. In addition to the promising interest rate news, Opera shares also received bullish coverage from one analyst.

The Fed is sending optimistic signals to investors

Investors got long-awaited good news on interest rates on Friday. In his keynote speech at the Federal Reserve’s annual conference in Jackson Hole, Wyoming, Chairman Powell indicated that the US central bank will cut benchmark interest rates in the near future.

With inflation falling and signs of weak jobs numbers, Powell said it was time for a change in rate policy. While he did not offer a specific rate cut commitment at the Fed’s September meeting, the substance and tone of his comments strongly suggest the Federal Open Market Committee will offer a rate cut next month. If that happens, the move could help extend the bullish momentum for the broader stock market.

One analyst believes Opera shares are on track to rise 48%

Before the market opened on Friday morning, B. Riley published a new research note on Opera. The investment firm maintained a buy rating on the stock and raised its one-year price target from $22 per share to $24 per share. Based on the stock’s closing price of $16.18 per share on Friday, the new target suggests an additional upside of about 48%.

The B. Riley analyst cited Opera’s strong second-quarter results and improved performance targets for this year as reasons for the price target increase. The company also believes that future AI products, features and initiatives will be optimal catalysts for the software company.

After this week’s big gains, Opera shares are now up about 22% in trading this year. The stock now trades at about 16 times this year’s expected earnings — a valuation that seems reasonable given the business’s recent momentum.