Investors showed interest in AI gaming tools, advances in cancer vaccines and future business growth.
- Bank of America and Deutsche Bank raised their price targets on Unity after a 32% jump in revenue.
- Profit and optimism around the cancer vaccine pipeline steered Moderna to a near five-year high.
- Airbnb stock also hit a nearly five-year high as analysts turned more positive on its business outlook.
Unity Software (U), Moderna (MRNA) and Airbnb (ABNB) stocks climbed to fresh 52-week highs on Monday, as strong earnings, upbeat revenue outlook and bullish analyst takes boosted investor sentiment. Unity benefited from its advertising business, Moderna returned to profit after two years, while Airbnb gained from improving growth prospects and Wall Street optimism.
Moderna and Airbnb stocks climbed 5% and 0.1%, respectively, while Unity stock pared gains and ended the session down 0.1%.
Unity’s Growth Outlook Draws Wall Street Attention
Unity stock hit a four-year high of $54.27, extending its post-earnings rally after delivering a stronger-than-expected third quarter (Q3), with revenue increasing 32% year-on-year. The company also issued upbeat Q4 guidance, seeing strategic revenue growth of 65% to 67%. Its advertising and monetization business is expected to expand by an even faster 105% to 107%
Following the results, several analysts raised their price targets. Bank of America boosted its price target to $65 from $50 and kept a ‘Buy’ rating. Deutsche Bank raised its target to $70 from $50, suggesting a potential 36% upside from the stock’s previous closing price.
CEO Matt Bromberg said that more developers using Unity’s platform could help the company generate more advertising revenue. On Stocktwits, retail sentiment toward the stock remained ‘extremely bullish’.
Moderna Gains As Analysts Express Optimism Around Cancer Vaccine
Moderna stock surged to a near five-year high of $280.80 after the company posted its first profitable quarter in two years. Q3 net income reached $162 million, or $0.38 per share, reversing a $200 million loss recorded a year earlier. Revenue advanced 29% to $1.31 billion, supported largely by stronger international sales of COVID-19 vaccines.
Piper Sandler raised its price target to $305 from $230 and kept an ‘Overweight’ rating, citing hopes for Moderna’s experimental skin cancer vaccine developed with Merck. The firm expects a major regulatory development by 2027. Goldman Sachs also raised its price target to $195 after the strong earnings report and improved annual forecast.
Retail sentiment around the stock remained ‘bullish’.
Airbnb Benefits From Analyst Upgrade
Airbnb stock also reached a near five-year high of $197.87 as analysts reassessed its growth prospects and operating strategy. Rothschild & Co Redburn upgraded ABNB from ‘Sell’ to ‘Neutral’ and increased its price target to $190 from $135. The firm said behind-the-scenes improvements had helped boost the company’s core operations.
Jefferies raised its price target to $230 from $215 and maintained a ‘Buy’ rating, suggesting the stock could rise another 21%. On Stocktwits, retail sentiment remained ‘extremely bullish’.
So far this year, U, MRNA and ABNB stocks have gained between 16% and 812%.
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