Nexxen International (NEXN) has received a new Buy rating, initiated by BTIG analyst, Jake Fuller.
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Jake Fuller has given his Buy rating due to a combination of factors that highlight Nexxen International’s strategic positioning and growth potential. One of the primary reasons is the rapid expansion of the connected TV (CTV) advertising market, which is expected to grow significantly in the US. Nexxen’s recent inclusion in the Russell 3000 and its US listing are likely to enhance investor awareness and confidence. Additionally, the company has improved its brand perception among customers, which bodes well for future business opportunities.
Furthermore, Nexxen’s financial health is underscored by its cash-generative nature and plans to repurchase a substantial portion of its capital stock, potentially resulting in a strong free cash flow yield. The programmatic business, particularly in video and CTV, is anticipated to grow at a healthy rate. Despite potential challenges such as competition with larger players and pricing pressures, Nexxen’s exclusive agreement with VIDAA and its focus on tier 2 agencies position it well for continued success. Overall, the risk-reward profile appears compelling, with a valuation disconnect offering attractive potential for investors.
In another report released on October 2, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $10.00 price target.