Nexxen International, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Tyler DiMatteo from BTIG maintained a Buy rating on the stock and has a $10.00 price target.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Tyler DiMatteo has given his Buy rating due to a combination of factors including Nexxen International’s strong position in the programmatic and connected TV (CTV) advertising sectors, which are experiencing above-average growth in digital ad spending. Despite a recent reduction in fiscal year 2025 guidance due to lower-than-expected activity from third-party demand-side platforms and changing spending patterns, the company still reported gross revenue and contribution ex-TAC that exceeded consensus estimates.
While the non-programmatic business faces challenges, Nexxen’s programmatic revenue is expected to constitute a larger portion of its total revenue, indicating a strategic focus on this area. The company’s video segment, which makes up a significant portion of programmatic revenue, continues to grow, although the CTV segment has faced some market pressure. DiMatteo’s valuation sees a potential range for the stock based on various financial assumptions, supporting the Buy rating as Nexxen is well-positioned to capitalize on growth opportunities in its core markets.