For any stock, it's usually a good day when a famous investment bank taps it as an investible asset. That happened on Wednesday to browser and digital content company Opera (OPRA -1.91%), giving its shares a more than 13% lift during the trading session. That was far more than enough to beat the S&P 500 index's 1.4% rise.
Goldman Sachs initiated Opera stock with a resounding buy
The raiser in question was Goldman Sachs. Well before market open, its analyst Eric Sheridan initiated coverage of Opera stock with a buy recommendation at a price target of $16.50 per each of its American depositary shares (ADS). Even after Wednesday's price surge, that level implies a potential gain of over 33% for the specialty tech company.
It wasn't immediately apparent why Sheridan was so bullish on the stock. However, his move comes a mere day after Opera declared its latest semiannual dividend. The company is paying its shareholders $0.40 per ADS. This is to be handed out on or about Jan. 9, 2024, to investors of record as of Jan. 3.
Opera's dividend is still relatively new. The company launched its semiannual payout only this past June, with that same $0.40 per ADS distribution.
A high-yield dividend is always a draw
At the current share price, Opera's payout yields almost 6.5%; it's little wonder, then, that an analyst would find the stock appealing. Even some of the market's most reliable dividend stocks don't approach that level. Meanwhile, Opera is a well-established name in the alternative browser sphere, and in its most recently reported quarter, it posted double-digit gains in both revenue and headline net income.
