JMP maintains Nexxen stock Market Outperform, $15 target

Friday, JMP Securities analysts maintained a Market Outperform rating on Nexxen (NASDAQ:NEXN) with a steady price target of $15.00, well within the analyst range of $14.00 to $25.40. The firm’s positive stance is based on Nexxen’s comprehensive platform, which includes both a demand-side platform (DSP) and a supply-side platform (SSP), linked by a proprietary data platform. This data platform’s capabilities were recently enhanced through the continued exclusive access to VIDAA’s global Automatic Content Recognition (ACR) data. According to InvestingPro data, Nexxen maintains a "GREAT" financial health score of 3.09, supported by strong cash flow and momentum metrics.

Nexxen’s integration of generative AI throughout its offerings is expected to simplify the platform’s use, potentially boosting performance and helping to secure and grow advertiser budgets. With an impressive gross profit margin of 83.3% and revenue growth of 10.1% over the last twelve months, the company appears well-positioned to capitalize on the shift of approximately $123 billion from linear TV advertising to Connected TV (CTV), as forecasted by GroupM.

Despite Nexxen anticipating flat year-over-year EBITDA margins in 2025 due to investments in its generative AI products, JMP Securities projects a return to margin growth in 2026. The company has set medium-term targets of approximately 40% EBITDA margins. The analysts believe that Nexxen’s stock, currently valued at 4.0 times its projected 2026 EBITDA, has room for multiple expansion as it compares favorably with its peers.

The expiration of the VIDAA partnership, which had been a concern for investors, is no longer considered a significant risk. With Nexxen at the beginning of a new product cycle with its nexAI suite, JMP Securities suggests that the company’s stock multiple could increase as it continues to reiterate its Market Outperform rating and $15 price target.

In other recent news, Nexxen International Ltd. reported impressive first-quarter results, surpassing expectations with adjusted earnings per share of $0.16, well above the anticipated $0.07. The company’s revenue reached $78.33 million, exceeding the consensus forecast of $73.2 million, with a notable 40% year-over-year increase in connected TV (CTV) revenue. This strong performance was highlighted by a significant rise in adjusted EBITDA, which nearly doubled to $23.1 million, reflecting a 95% year-over-year growth. Nexxen has maintained its full-year 2025 guidance, projecting a contribution ex-TAC of approximately $380 million and adjusted EBITDA of about $125 million, despite some noted softness in the advertising market.

In terms of analyst perspectives, Canaccord Genuity upheld a Buy rating on Nexxen with a price target of $14, while Citizens JMP raised its price target to $15, maintaining a Market Outperform rating. Nexxen’s strategic focus includes expanding its sales force in the U.S. and Europe and developing new AI solutions for advertisers. Additionally, Nexxen announced plans to extend its partnership with smart TV platform VIDAA in North America, aiming to enhance ad monetization and leverage VIDAA’s extensive connected device network. The non-binding memorandum of understanding between Nexxen and VIDAA, if finalized, could further solidify Nexxen’s position in the North American smart TV advertising market.

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