Unity Software Inc. U shares rallied Tuesday after one analyst started the games engine and app monetization company at a buy and the company launched a dedicated AI software store. Unity shares rallied more than 15% to an intraday high of $42.44 Tuesday. On Tuesday, Wells Fargo analyst Brian Fitzgerald initiated coverage of Unity with an overweight rating and a $48 price target on the basis that “waning metaverse hype” and questions about IronSource being the “right asset, wrong price, inopportune time” have “overshadowed a meaningful mobile cross-sell opportunity, cost synergies, and Industry [total addressable market] —creating an attractive buying opportunity.” Unity on Tuesday also said it launched a “dedicated AI marketplace” on its site for verified and community built software for developers. Nearly a year ago, IronSource agreed to be acquired by Unity for $4.4 billion, and the deal closed in November, after AppLovin Corp. APP abandoned its $20 billion offer to buy Unity in September. “We see a compelling opportunity for Unity to sell acquired IronSource monetization solutions…to its developer installed base (which generates 70%+ of mobile games on app stores) and think a unified platform (to develop, grow, manage, and monetize apps) is compelling in a still-fragmented ecosystem,” Fitzgerald said in a Tuesday note.
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