On August 7, Unity Software Inc. rose 5.12% in pre-market trading, trading at $42.9/share, with turnover of $2.98 million. The move was driven by Morgan Stanley significantly raising its price target on Unity from $35 to $50 while maintaining an Overweight rating, becoming the first major bank to notably upgrade its target following the earnings release.

The upgrade follows Unity's Q2 earnings report released the prior day, which beat expectations across the board. Revenue came in at $546.5 million, well above the consensus estimate of $514.7 million, representing 24% year-over-year growth. Adjusted EPS was $0.28, dramatically surpassing the market estimate of -$0.09. The company also issued strong Q3 guidance, projecting strategic revenue of $540 million to $550 million, implying 44% to 47% year-over-year growth. Additionally, Tripledot Studios completed a $40 million cash acquisition of Unity's Supersonic publishing business, reflecting continued portfolio optimization.

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