JMP Securities holds Nexxen stock at $11.00 target

The firm’s analysis also included a valuation perspective, stating that Nexxen’s shares are currently trading at an attractive multiple of 3.9 times its estimated 2026 EBITDA. This valuation, combined with the positive industry trends and Nexxen’s corporate strategies, led analysts to conclude that the stock presents a favorable risk/reward scenario for investors at the present price levels. The stock has demonstrated strong momentum with an 87% return over the past year, despite a modest -3.89% YTD performance. For more detailed analysis and 12 additional ProTips about Nexxen, visit InvestingPro. The stock has demonstrated strong momentum with an 87% return over the past year, despite a modest -3.89% YTD performance. For more detailed analysis and 12 additional ProTips about Nexxen, visit InvestingPro.

Analysts noted that Nexxen has shifted its focus towards execution following a period of acquisitions, which has significantly enhanced its performance in recent quarters. The company’s technological capabilities are now well-established, supporting its strategic emphasis on execution, as evidenced by its impressive gross profit margin of 82.29%.

Additionally, Nexxen has prioritized share repurchases as its main method of capital allocation. Last quarter, the company announced a new $50 million share repurchase program. JMP Securities pointed out that this move underlines the company’s commitment to enhancing shareholder value. InvestingPro data confirms this trend, highlighting management’s aggressive share buyback strategy as one of several bullish indicators.

The firm’s analysis also included a valuation perspective, stating that Nexxen’s shares are currently trading at an attractive multiple of 3.9 times its estimated 2026 EBITDA. This valuation, combined with the positive industry trends and Nexxen’s corporate strategies, led analysts to conclude that the stock presents a favorable risk/reward scenario for investors at the present price levels.

In other recent news, RBC Capital Markets has expressed a positive stance on various software companies, with Adobe (NASDAQ:ADBE), Microsoft (NASDAQ:MSFT), and Snowflake (NYSE:SNOW) among its top picks. The firm is optimistic about Adobe’s potential in the generative editing space, Microsoft’s capacity to capitalize on generative AI, and Snowflake’s potential for revenue growth from new applications and AI workloads. In other developments, Nexxen International Ltd. has initiated a $50 million share repurchase program and plans to increase its end-to-end revenues from 50% to 60% of total revenues. Analyst firms Needham and RBC Capital have shown confidence in Nexxen’s future, with Needham maintaining a Buy rating and raising the stock’s price target to $9.50, and RBC Capital maintaining an Outperform rating and increasing its price target from $9 to $11. These are just some of the recent developments from these companies.

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