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On Thursday, Raymond (NSE:RYMD) James analyst Andrew Marok reaffirmed a positive outlook on Nexxen (NASDAQ:NEXN), maintaining an Outperform rating with a $15.00 price target. According to InvestingPro data, analyst targets for Nexxen range from $14.00 to $25.40, with the stock showing impressive momentum, gaining over 118% in the past year. The company maintains a "GREAT" financial health score of 3.09 out of 4. Following Nexxen’s Investor Day, Marok expressed continued confidence in the company’s direction, emphasizing its disciplined approach since the acquisition of Amobee. The company’s strategic plan focuses on leveraging product and technology investments, as well as partnerships, to drive growth. This strategy appears to be working, as InvestingPro data shows the company maintaining an impressive 83.3% gross profit margin and healthy revenue growth of 10.1% over the last twelve months.
Nexxen’s management outlined several factors underpinning the company’s strategy during the Investor Day. Key highlights include a strong alignment with high-growth channels such as Video and Connected TV (CTV), a product investment roadmap that capitalizes on Nexxen’s strengths in data and artificial intelligence (AI), and progress in data partnerships that enhance the company’s offerings.
Marok noted that these strategic elements support Nexxen’s long-term projections and reinforce the analyst’s positive stance. The company’s commitment to product and technology development, coupled with strategic partnerships, is expected to contribute to its growth trajectory.
Additionally, Nexxen’s end-to-end platform structure is seen as a positive factor for margin improvement. The company’s integrated approach is anticipated to drive efficiencies and support profitability in the longer term.
The reassurance of the Outperform rating and the $15.00 price target by Raymond James reflects the firm’s belief in Nexxen’s potential for sustained performance and value creation for its shareholders. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued. For deeper insights into Nexxen’s financial health, growth prospects, and 13 additional ProTips, subscribers can access the comprehensive Pro Research Report, which transforms complex Wall Street data into actionable intelligence.
In other recent news, Nexxen International Ltd. reported impressive first-quarter results, with revenue reaching $78.33 million, surpassing the forecasted $73.2 million. The company’s adjusted earnings per share came in at $0.16, exceeding the anticipated $0.07. Nexxen’s Connected TV (CTV) revenue saw a notable 40% year-over-year increase, contributing significantly to the company’s strong performance. Adjusted EBITDA nearly doubled to $23.1 million, reflecting a 95% rise from the previous year.
Additionally, the company reaffirmed its full-year 2025 guidance, projecting a contribution ex-TAC of approximately $380 million and an adjusted EBITDA of about $125 million. Nexxen also announced plans to expand its partnership with VIDAA in North America, aiming to extend its ad monetization exclusivity to include display ads. Meanwhile, Citizens JMP raised its price target for Nexxen shares to $15.00, emphasizing confidence in the company’s ability to navigate current market conditions. Canaccord Genuity maintained a Buy rating with a $14.00 price target, highlighting Nexxen’s robust growth in CTV services. Lastly, JMP Securities reiterated a Market Outperform rating, citing Nexxen’s potential to capitalize on shifts in advertising trends.
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