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Nexxen International’s Strong Growth Potential and Profitability Justify Buy Rating Despite Revenue Misses

Nexxen International’s Strong Growth Potential and Profitability Justify Buy Rating Despite Revenue Misses

Analyst Laura Martin from Needham maintained a Buy rating on Nexxen International and keeping the price target at $14.00.

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Laura Martin has given her Buy rating due to a combination of factors that highlight Nexxen International’s potential for growth and profitability. The company’s second-quarter results for 2025 showed a 12% year-over-year increase in adjusted EBITDA, which surpassed expectations by 13%. This indicates strong operational efficiency and profitability. Additionally, the company’s licensing revenue, particularly its investment in VIDAA for exclusive data on Hisense and Toshiba TVs, is seen as a strategic move to enhance its market position.
Despite some concerns, such as missing revenue estimates and limited comparability due to non-US GAAP reporting, the positives outweigh the negatives. Programmatic revenues reached a record high, demonstrating robust demand in that segment. Furthermore, the expansion of the adjusted EBITDA margin to 34% reflects improved cost management and operational leverage. These factors collectively support Laura Martin’s positive outlook and Buy rating for Nexxen International.

In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $14.00 price target.

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