TMTB Morning Wrap

Futures slightly down to start the day as we await PPI in several minutes. BTC +2%. China -1%. Yields flattish.

Lots to get to, so let’s get straight to it…

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U: Hearing chatter Edgewater positive calling out significant Vector improvement since late June with UA KPIs up as much a 25-30% on the high end

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U: Jefferies Raises Price Target to $35 on Growing Confidence in Unity Vector

Jefferies boosted its price target on Unity to $35, citing encouraging early feedback on its Vector ad product, despite limited adoption and ROAS impact so far. The firm noted positive mentions rose in Q2 and ROAS gains are now seen in the 10–20% range, up from 5–7% last quarter. While most clients haven't yet observed results, Jefferies expects benefits to emerge over several quarters. Unity's 2025 ad share intent jumped 119bps y/y, and usage of the Unity 6 engine continues to expand.. As a result, Jefferies raised Unity revenue estimates for FY25/FY26 by 2–3%, EBITDA by 9–11%, and now values the stock at 32x 2026 EBITDA.

TMTB: We mentioned yesterday we had warmed up to the name given Vector checks that had begun to turn but thought real catalyst was an Edge or Clev note coming out more positive - well we got it today and stock breaking out through $30 resistance — we think stock has more to go. Lots of increased investor interest in the name over the last 2 weeks so lots of people digging in here wanting to get involved given the large move APP had over the last year. Tech investors love a little pattern recognition.

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MRVL/AI Chip: Fubon Jefferies saying Alchip Extends Lead Over Marvell, talks down Trn 3 Lite

This took AI chip +7% overnight and has MRVL -3% early. Details: