The Analyst Landscape: 7 Takes On Unity Software

Across the recent three months, 7 analysts have shared their insights on Unity Software U, expressing a variety of opinions spanning from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 2 2 0 1
Last 30D 1 0 0 0 0
1M Ago 0 0 1 0 0
2M Ago 1 2 1 0 1
3M Ago 0 0 0 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $27.43, along with a high estimate of $33.50 and a low estimate of $16.00. Marking an increase of 2.35%, the current average surpasses the previous average price target of $26.80.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Unity Software by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Parker Lane Stifel Lowers Buy $25.00 $30.00
Kash Rangan Goldman Sachs Lowers Neutral $26.00 $29.00
Mike Hickey Benchmark Maintains Sell $16.00 $16.00
Bernie McTernan Needham Maintains Buy $31.00 $31.00
Ross Sandler Barclays Lowers Equal-Weight $27.00 $28.00
Michael Pachter Wedbush Maintains Outperform $33.50 -
Michael Pachter Wedbush Maintains Outperform $33.50 -

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Unity Software. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Unity Software compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Unity Software's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Unity Software's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Unity Software analyst ratings.

Unveiling the Story Behind Unity Software

Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC, and Other Americas, of which key revenue is derived from the EMEA region. The products are used in the gaming industry, architecture and construction sector, animation industry, and designing sector.

Financial Insights: Unity Software

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Negative Revenue Trend: Examining Unity Software's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -7.99% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -63.22%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.14%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Unity Software's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -4.16%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Unity Software's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.7, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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