Craig-Hallum downgrades Nexxen on challenging near-term setup

Craig-Hallum downgraded Nexxen (NEXN) to Hold from Buy with a price target of $8, down from $18, following the Q3 report. A bunch of “outside forces,” including Trade Desk’s (TTD) changes to Kokai, a drop connected TV advertising rates, and weakening advertising budgets, are creating a challenging near-term fundamental setup for Nexxen, the analyst tells investors in a research note. The firm says the company’s commitment to double-digit growth in 2026 is not the conservative target it was hoping for. Craig-Hallum believes Nexxen shares will be in the “penalty box” pending the next positive catalyst.