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On Thursday, Lake Street Capital Markets adjusted its outlook on Nexxen (NASDAQ:NEXN), increasing the stock price target to $7.00 from the previous $6.50. The firm maintains a Buy rating on the stock.

This revision comes as Nexxen has provided a forecast for 2024 that surpasses expectations for both Contribution, ex-TAC (traffic acquisition costs), and AEBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization).

The company’s revised and more positive guidance for the upcoming year is attributed to several strategic initiatives. These include the post-Amobee restructuring, the rebranding to Nexxen, the integration of sales processes, and enhanced data licensing for Connected TV (CTV). These factors have led to an increase in the full-year estimates for Contribution, ex-TAC, and AEBITDA.

Lake Street’s revised price target reflects the firm’s confidence in Nexxen’s strategic moves and their potential to drive financial performance. The company’s focus on restructuring and rebranding, coupled with its efforts to integrate sales and capitalize on CTV data licensing, are seen as key drivers for the improved outlook.

The higher price target suggests that Lake Street Capital Markets sees a stronger growth trajectory for Nexxen, underpinned by the company’s recent initiatives. The firm’s stance remains positive, as indicated by the maintained Buy rating.

Investors may consider the updated price target and the underlying reasons for the adjustment as they evaluate Nexxen’s stock. The company’s strategic efforts in restructuring and expanding its data licensing capabilities are central to its optimistic forecast for 2024.

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