According to the financial app Intelligence App, Morgan Stanley recently upgraded its rating on Unity Software (U.S.)，demonstrating confidence in its game engine business and market competitiveness. Analyst Matthew Cost raised Unity Software's rating from "hold" to "shareholding" while maintaining a target price of $22 and a bullish target price of $45. The stock rose over 2% to $16.7 at Tuesday's close.

According to Morgan Stanley analyst Cost's client report, due to the market's general expectation of Unity Software's growth from 2024 to 2027 at only 6%, any expectations for future growth have correspondingly decreased. However, Cost believes that after the guidance for second quarter performance was lowered, the long-term forecast risk for Unity Software is relatively low.

Cost further emphasized that despite the challenges in customer relationships, Unity Software still maintains a 70% market share in the mobile market with its game engine. He believes this demonstrates the company's competitive advantage, as competitors cannot gain market share by sacrificing Unity Software. Based on these analyses, Cost raised Unity Software's rating to "shareholding" and maintained a target price of $22 and a bullish target price of $45.

Despite the positive assessment from Morgan Stanley, analysts remain cautious about Unity Software overall. Seeking Alpha suggests "hold" the company's stocks, while Wall Street analysts generally hold a "hold" rating. At the same time, Seeking Alpha's quantitative system (historically outperforming the market) gives a "sell" rating. This indicates that although Unity Software has been recognized in certain aspects, there is still a difference of opinion in the market regarding its future development.