Positive Outlook for Unity Software Amid Transitional Year and Strong Growth Segments

Bernie McTernan, an analyst from Needham, reiterated the Buy rating on Unity Software (U – Research Report). The associated price target was lowered to $30.00.

Bernie McTernan has given his Buy rating due to a combination of factors that suggest a positive outlook for Unity Software. Despite lowering the price target to $30, McTernan sees the current year as a transitional phase for the company, with promising underlying business trends.
The analyst highlights the company’s Grow segment, noting improvements in return on ad spend and the potential for further benefits as the model evolves and better integrates Create data. Additionally, the Create segment is showing strength, with subscription revenue making up 80% of total revenue and experiencing double-digit growth. McTernan views the risk-reward profile of Unity’s shares favorably, supported by encouraging data points from the first quarter in this turnaround phase.

In another report released today, Wedbush also reiterated a Buy rating on the stock with a $31.50 price target.

Based on the recent corporate insider activity of 93 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of U in relation to earlier this year.