Unity Stock Jumps As Analyst Sees 'Underappreciated' Upside Ahead

Unity Software Inc. (NYSE:U) shares are trading higher Thursday after BTIG upgraded the stock from a Neutral rating to a Buy rating and set a price target of $60.

• Unity Software shares are testing new highs. Why are U shares at highs?

What To Know: BTIG upgraded Unity based on its view that expectations for the company's Grow segment are too low and that the industry backdrop is improving. The firm sees potential for better Grow performance into late 2025, which could drive revisions for 2026 and 2027.

“Addressing the mobile market backdrop, the benefits of steering … rising non-endemic marketer demand, and UA financing seem underappreciated, and set the stage for double-digit growth in both revenue and UA spend for several more years,” BTIG said in the note.

BTIG added that Unity will have two new data streams beginning in the first half of 2026 tied to runtime and transactional data from the Create in-app purchase launch, noting any benefit from those additions would likely be incremental to current estimates.

The firm also pointed to a healthier mobile market environment, citing factors such as shifting transactions away from high-commission app store channels, rising non-endemic marketer demand and increased use of user-acquisition financing. BTIG believes these trends support several years of double-digit growth in both revenue and user-acquisition spending.

On the Create side, BTIG highlighted the launch of a direct transaction framework for developers, which it believes could become a meaningful contributor to revenue and EBITDA as adoption builds.

The firm said app store commissions remain a major cost for developers and that incentives used by peers suggest consumer migration is achievable. BTIG estimated the initiative could generate more than $40 million in incremental EBITDA in 2027 and more than $100 million in 2028.

“We rate Unity Buy with a $60 PT and a Bull/Bear range of $31-$71 based on 2026 EV/EBITDA,” the analyst firm said.

Related Link: Roku To Rally More Than 28%? Here Are 10 Top Analyst Forecasts For Thursday

U Price Action: At the time of writing, Unity shares are trading 2.82% higher at $50.36, according to data from Benzinga Pro.

Image via Shuttertock