NEXN: Future Nasdaq Listing And Russell 3000 Inclusion Will Increase Market Visibility

Analysts have revised their price targets for Nexxen International downward by several dollars. The new targets now range from $8 to $15, as shifts in spending behavior from key DSP partners prompted a reassessment of the company’s growth trajectory and immediate outlook.

Analyst Commentary

Recent analyst reports reflect a reassessment of Nexxen International's prospects following earnings releases and guidance updates. Opinions are divided, with some analysts identifying meaningful opportunities, while others highlight notable risks in the current outlook.

• Bullish analysts maintain positive ratings and note areas of strength within Nexxen’s business that are expected to offset disruptions from key DSP partners over the coming year.
• Several reports emphasize the company’s differentiated, integrated end-to-end platform, including its DSP/SSP stack and proprietary data infrastructure, as a foundation for long-term growth.
• Despite near-term headwinds, the connected TV ad market remains a significant growth channel for Nexxen, with increased visibility following new stock exchange listings and index inclusion.
• Some analysts suggest that while guidance has been trimmed, the magnitude of the downgrade is muted. Price targets remain above current trading levels and reflect expectations for recovery or resiliency.

• Bearish analysts point to a challenging near-term setup and cite outside forces such as changes from major DSP partners, softer connected TV ad rates, and weakened advertising budgets impacting growth visibility.
• Recent guidance reductions and customer spending shifts contributed to notable share price declines. These changes signal investor concerns about future execution and demand.
• The commitment to double-digit growth in 2026 is seen as less conservative than hoped for and raises skepticism about the achievability of targets in a volatile market.
• Several analysts caution that Nexxen shares may remain in a holding pattern until a clear positive catalyst emerges to restore momentum and confidence in execution.

What's in the News

• Nexxen International lowered earnings guidance for full year 2025. The company now expects programmatic revenue to account for approximately 95% of annual revenue and anticipates mid-single-digit growth. (Company guidance update)
• The company completed a share buyback, repurchasing over 661,000 shares for $6.1 million between August 15 and October 31, 2025. (Company buyback announcement)
• Nexxen licensed its automatic content recognition audience segments to Yahoo DSP, making its data available in the U.S., U.K., and Germany as part of Yahoo DSP's Unified TV Audiences. (Client announcement)
• The launch of Nexxen's Curated Marketplace enables data owners and agencies to monetize data-driven private marketplace deals through an enhanced platform. (Product announcement)
• Nexxen introduced a global capability to programmatically activate native Smart TV advertising inventory through its DSP. This streamlines access to supply from leading OEMs like Hisense and Toshiba. (Product announcement)

Valuation Changes

• The Fair Value Estimate has declined from $16.14 to $14.84, representing a modest decrease in perceived intrinsic value.
• The Discount Rate has risen slightly from 8.34% to 8.52%, reflecting a higher risk premium applied to future earnings.
• The Revenue Growth Projection has fallen significantly, from 7.91% previously to 6.10%, indicating a more conservative view on top-line expansion.
• The Net Profit Margin forecast has edged lower, from 10.69% to 10.06%, suggesting slightly reduced expectations for future profitability.
• The Future Price-to-Earnings (P/E) Ratio has increased from 20.54x to 21.38x, implying a higher valuation multiple despite revised growth and margin projections.