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NEW YORK - Nexxen International Ltd. (NASDAQ: NEXN), an Israel-based advertising technology firm with a market capitalization of $673 million and a perfect Piotroski Score of 9 according to InvestingPro, is poised to join the Russell 3000 Index, as announced in a preliminary list of additions by FTSE Russell. The final inclusion of Nexxen, which provides a platform for data-driven and advanced TV advertising, is expected to take effect after the U.S. market opens on June 30, 2025, following the Russell indexes’ annual reconstitution slated for after market close on June 27, 2025.
The inclusion in the Russell 3000 Index will also mean Nexxen’s automatic entry into the small-cap Russell 2000 Index and the relevant growth and value style indexes. This development is a testament to the company’s growth and visibility in the U.S. investment community, supported by its impressive 84% gross profit margins and strong financial health score of "GREAT" on InvestingPro.
Earlier structural changes in February 2025, when Nexxen converted its Nasdaq-listed ADRs to Ordinary Shares and consolidated to a single U.S. listing, were seen as crucial steps in meeting the Russell index inclusion criteria. "This milestone reflects the strength of our strategy, the power of our robust technology platform, and the growing impact we are having in shaping the global advertising technology ecosystem," commented Ofer Druker, CEO of Nexxen.
Nexxen’s technology stack includes a demand-side platform (DSP) and supply-side platform (SSP), centered around the Nexxen Data Platform. The company’s capabilities span various functions, including discovery, planning, activation, monetization, measurement, and optimization, catering to advertisers, agencies, publishers, and broadcasters globally.
The anticipation of the index inclusion is based on Nexxen’s current performance and market position, highlighted by its remarkable 118% return over the past year. While forward-looking statements involve risks and uncertainties, InvestingPro analysis suggests the stock is currently undervalued, with 12 additional exclusive ProTips available for subscribers. The company’s actual future results may differ from current expectations, and it has cautioned against placing undue reliance on these projections.
This news article is based on a press release statement from Nexxen International Ltd. and does not include any analysis or commentary on the reported facts.
In other recent news, Nexxen has reported strong first-quarter results for 2025, surpassing expectations in both contribution excluding Traffic Acquisition Costs (ex-TAC) and adjusted EBITDA. The company’s performance was bolstered by a significant year-over-year growth of over 40% in its Connected TV (CTV) services. Despite these positive results, Nexxen has decided to maintain its full-year guidance, citing a temporary softness in the advertising market. This softness is attributed to delays in advertising campaigns, with expectations that spending will resume in the second half of the year.
Analysts have reacted positively to these developments. Raymond James and JMP Securities both reaffirmed their Outperform ratings, with a price target of $15.00, while Canaccord Genuity maintained a Buy rating with a $14.00 target. Citizens JMP also raised its price target to $15.00, reflecting confidence in Nexxen’s strategic direction and potential to navigate current market challenges. Nexxen’s strategic partnership with VIDAA is set to expand, with a memorandum of understanding aiming to extend their collaboration in North America.
The company’s integration of generative AI and its comprehensive platform continue to be key factors in its growth strategy. Analysts from JMP Securities highlight Nexxen’s potential to capitalize on a projected $123 billion shift from linear TV to Connected TV advertising. The firm’s unified technology stack and strategic partnerships are expected to support its long-term growth trajectory.
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