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Unity price target raised to $40 from $25 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Unity (U) to $40 from $25 and keeps an Overweight rating on the shares. The company posted a Q2 beat as Vector drove 15% sequential growth for Unity Ads. The firm, which came away from the report “significantly more confident in earnings revisions ahead,” raised its own FY26 and FY27 EBITDA estimates by 8% and 19%, respectively, and recommends investors to be “buyers of any tactical weakness.”

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