NEXN: Thoughts from Nexxen's Investor Day

Research evidence excerpt

NEXN: Thoughts from Nexxen's Investor Day

Nexxen International Ltd.

Target/Upside/Downside Scenarios Investment summary

End-to-differentiation: Nexxen operates an end-to-endNexxen International Ltd.

platform including a demand-side platform (DSP) and supply-

14 125 Weeks 24JAN24 - 16JUN26 side platform (SSP) as well as a data-management platform

12 (DMP) that integrates data from both. The advantage from the

TARGETTARGET 11.0011.00 company's perspective is clear. The company gains additional 10

CURRENTCURRENT 8.758.75 revenue streams while also having full visibility into the eco-

8 system with first-party proprietary data reaching its data

6 management platform from both ends. The advantage from

4 a high-level to its customers is also clear, being able to have

2 a centrally managed eco-system across the supply chain can

8m 6m provide greater visibility as well as cost advantages from

4m 2m working with a single vendor. End-to-end customers represent

2024 2025 2026 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J +60% of revenue, reflecting customer comfort with the full-

NEXN US Rel. S&P 500 COMPOSITE MA 40 weeks stack approach.

Source: Bloomberg and RBC Capital Markets estimates for Target

Valuation Attractive financial model: The company has maintained best-

We calculate our base-case price target of $11 by applying a in-class profitability due to its full-stack approach as adjusted

3.7x multiple to our CY/27E adj-EBITDA. Our target multiple EBITDA continues to outperform.

is a discount to ad-tech peers' CY/27E EV/EBITDA, due to

Risks to rating and price targetexpectations for higher profitability but lower growth than

peers in CY/27E. Our price target supports our Outperform • Company is tied to the advertising vertical; any