Analyst Alec Brondolo from Wells Fargo maintained a Hold rating on Unity Software and increased the price target to $29.00 from $24.00.
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Alec Brondolo has given his Hold rating due to a combination of factors influencing Unity Software’s current financial performance. The company reported better-than-expected earnings per share for the second quarter, and their guidance for the third quarter aligns with expectations. However, while the Unity Ad Network showed significant growth, other areas like IS and Levelplay experienced declines, which limited further upside potential.
Despite the overall improvement in results, the company’s revenue growth was modest, and the composition of the earnings beat was not entirely favorable. The management’s guidance for future revenue is slightly conservative, and the interplay between the Unity Ad Network’s acceleration and the declines in Ironsource remains a critical factor. These mixed signals contribute to the Hold rating, as investors await clearer indications of sustained growth and improvement.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 81 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.