Opera Rises as Skyfire Deal Signals Strategy Success: Oslo Mover
Stock Chart for Opera Software ASA (OPERA)
Opera Software ASA (OPERA), the Norwegian maker of Internet browsers, rose the most in almost seven months as a deal to supply its Skyfire software to an unidentified mobile operator signals that its strategy is working.
Shares in the Oslo-based company rose as much as 6.4 percent, the biggest intraday increase since Nov. 20, and were up 4.3 percent at 43.9 kroner as of 3:13 p.m. in the Norwegian capital. About 437,000 shares have traded so far today, more than 60 percent above the three-month daily average.
“Operators are starting to use cloud solution technology, instead of just hardware,” Andre Holo Adolfsen, an analyst at Nordea Securities, said by telephone from Oslo. This is proof that the concept of Skyfire works and that operators are willing to install the software and technology in their networks, he said.
Opera, which competes with Apple Inc. (AAPL), Google Inc. (GOOG) and Microsoft Corp. (MSFT) browsers, is seeking to boost sales by targeting the growing mobile-phone data market for its cross-platform Internet browser. It plans to increase revenue this year by as much as 37 percent from $216 million last year.
Opera signed a three-year global frame agreement with an unidentified “major international mobile operator” to supply Skyfire’s Rocket Optimizer cloud technology across the operator’s network, the company said in a statement.
“Skyfire was a smart and cheap acquisition,” said Holo Adolfsen, who recommends that clients buy the stock. “The upside is tremendous.”
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