In a report released today, Laura Martin from Needham maintained a Buy rating on Nexxen International, with a price target of $9.00.
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Laura Martin’s rating is based on a combination of factors that suggest potential growth for Nexxen International despite some recent challenges. The company reported an increase in IFRS revenues by 5% year-over-year and an 8% rise in adjusted net revenue, indicating a positive trend in its core business operations. Although these figures were slightly below estimates, they still reflect a growth trajectory.
However, Laura Martin acknowledges the challenges Nexxen faces, such as a decrease in adjusted EBITDA and non-IFRS EPS, which were below expectations. The decision to shut down an under-performing business, accounting for a $10 million decline in FY26 revenue outlook, is seen as a strategic move to streamline operations. Despite concerns about revenue visibility due to reliance on third-party sources, the overall assessment suggests that Nexxen’s strategic adjustments and growth potential justify a Buy rating.