Analysts have reaffirmed Nexxen International’s fair value estimate at $16.14 per share. They are maintaining their price outlook as recent research highlights the company’s growing visibility and strategic positioning in the rapidly expanding connected TV advertising sector.
Analyst Commentary
Recent street research has provided additional perspective on Nexxen International’s prospects, underlining factors that drive both optimism and measured caution regarding the company’s valuation and execution outlook.
Bullish Takeaways
- Bullish analysts highlight the significant growth of connected TV advertising. They view Nexxen as strongly positioned within one of the fastest-growing channels in digital marketing.
- The company’s recent listing on the Nasdaq is seen as a catalyst for improved visibility and broader investor interest, which may support share price appreciation.
- Inclusion in major indices, such as the Russell 3000, is expected to spur institutional attention and potentially enhance liquidity and valuation multiples.
- Strategic moves in product development and market positioning support expectations for Nexxen to sustain above-market growth rates relative to industry peers.
Bearish Takeaways
- Bearish analysts note that while the connected TV space is attractive, competition remains intense. This could impact Nexxen's ability to capture incremental market share.
- There are concerns about the pace of execution as Nexxen scales its operations and invests in new markets, which may put pressure on margins in the near term.
- Some believe that the current price targets already reflect a significant portion of potential upside from future growth. This signals limited room for multiple expansion unless execution exceeds expectations.
What's in the News
- Nexxen licensed its automatic content recognition (ACR) audience segments to Yahoo DSP, enabling advertisers in the U.S., U.K., and Germany to access enhanced targeting and audience insights. In the U.S., Nexxen's ACR data is included in Yahoo DSP's Unified TV Audiences offering (Key Developments).
- General availability of Curated Marketplace was announced, allowing data owners, publishers, curators, and agencies to monetize proprietary and third-party data through data-driven private marketplace deals on Nexxen's premium supply (Key Developments).
- Nexxen launched a first-to-market global capability to programmatically activate native Smart TV advertising inventory through its demand-side platform. This unlocks a new and highly visible supply format for brands (Key Developments).
- The company completed the repurchase of 4,956,679 shares, representing 8.74% for $50 million, under the buyback program announced on May 1, 2025 (Key Developments).
- Nexxen reaffirmed earnings guidance for full year 2025, expecting programmatic revenue to make up approximately 90% of total revenue (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at $16.14 per share.
- Discount Rate decreased slightly from 8.36% to 8.34%.
- Revenue Growth remains effectively flat at approximately 7.91%.
- Net Profit Margin holds steady at roughly 10.69%.
- Future P/E Ratio decreased marginally from 20.56x to 20.54x.
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