Nexxen International (NEXN) reported strong Q2 results, with Connected TV revenue standing out as product traction and go-to-market execution continues to resonate with customers, RBC Capital Markets said in a note emailed Thursday.

Trends into Q3 remain healthy and full-year guidance was raised for the third time this year, as growth drivers continue to mature well, according to the note.

HomeScreen continues to perform well and should contribute more significantly in Q4, with its contribution accelerating into 2027, driven by solid pipeline demand and original equipment manufacturer partnerships, the firm said. Mobile in-app also remains a strong long-term growth catalyst, the note added.

Discovery, one of Nexxen's agentic AI initiatives, remains a core differentiator that resonates with customers, particularly heading into mid-term elections, while the launch of the new DSP UI, NexAI DSP Assistant, and NexAI Interoperability is becoming increasingly important for enterprises, the brokerage said.

RBC kept an outperform rating on Nexxen International and raised its price target to $13 from $11.

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