Liftoff Mobile's (LFTO) Cortex engine along with benefits of vertical diversification create a solid runway for durable growth and margin expansion, RBC Capital Markets said in a Thursday note.

The company's Cortex prediction engine remains the focus as self-learning drives consistent growth, with upside potential coming from model breakthroughs, according to the note.

Additionally, management has noted that the speed of learning used to take two weeks of campaign to grow user acquisition for advertisers and now takes a day, highlighting the efficiency of the predictive engine, according to the note.

RBC said that while the FIFA World Cup was a Q2 benefit, additional opportunities are coming in H2, where the platform platform should benefit across verticals from the NFL season, back-to-school and holiday commerce.

RBC maintained its outperform rating with a $35 price target.

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