- Goldman Sachs analyst Kash Rangan initiated coverage of Unity Software Inc U with a Buy rating and $135 price target, implying a 26% upside after Unity's strong Q2 results,
- Rangan sees the company as well-positioned to benefit from multiple compounding pivots in the gaming software industry following the strong Q2 results.
- Unity's core design engine has greater than 50% market share in global mobile game development, allowing it to ingest over 50 billion unique data points daily from its 3.4 billion MAUs, which drives his conviction.
- Stifel analyst Tom Roderick raised the price target to $135 from $125 and maintained a Buy.
- Unity posted a $32 million revenue beat for the quarter, with Operate accounting for the entirety of the beat, growing at 63% Y/Y off a tough compare, Roderick notes.
- He thinks traditional back-to-school seasonality and broader conservatism keep this beat and raise the story right on track.
- Piper Sandler analyst Brent Bracelin raised the price target to $152 from $150, implying a 41.9% upside, and affirmed an Overweight.
- Operate revenue growth of 25% Q/Q and 63% Y/Y as Unity gained share from general-purpose ad networks in Q2 show that investor fears about IDFA privacy changes proved to be overly pessimistic, Bracelin notes.
- Unity remains well-positioned for durable share gains post-IDFA and has untapped potential to further expand the footprint inside and outside of gaming. Bracelin reiterates the stock as a top second-half idea for growth investors.
- Price Action: U shares traded higher by 13.2% at $121.30 on the last check Wednesday.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in