Analyst Laura Martin of Needham maintained a Buy rating on Nexxen International (NEXN – Research Report), boosting the price target to $9.50.
Laura Martin’s rating is based on Nexxen International’s impressive financial performance in the third quarter of 2024, which exceeded expectations. The company reported a 13% year-over-year increase in IFRS revenues and a 12% rise in adjusted net revenue, both surpassing previous estimates. Furthermore, the adjusted EBITDA showed a significant growth of 49% compared to the previous year, along with a positive EPS of $0.10, reversing a loss from the same quarter last year.
Additional factors contributing to the Buy rating include the company’s strategic moves such as delisting from the London stock exchange, a remarkable 52% growth in connected TV revenue, and the use of data in 90% of ad campaigns during the quarter. Nexxen also experienced a notable increase in political revenue and reported robust EBITDA margins of 37%, indicating strong operational efficiency. These positive developments have led to upward revisions in future financial estimates and the price target.
According to TipRanks, Martin is an analyst with an average return of -5.7% and a 45.51% success rate. Martin covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Roku, and Taboola.com.
In another report released on November 12, RBC Capital also maintained a Buy rating on the stock with a $11.00 price target.
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Nexxen International (NEXN) Company Description:
Tremor International Ltd offers advertising technologies with operations in more than 60 countries. It offers data-focused marketing solutions that drive brand insight in mobile, leveraging video, native, and display to reach the users for every app, service, and brand. The group’s business divisions include Tremor Video, Unruly, RhythmOne, and Taptica. Geographically, it derives a majority of revenue from America and also has a presence in Asia, Europe, Israel, China, and other countries.
