Analyst Michael Pachter of Wedbush maintained a Buy rating on Unity Software (U – Research Report), boosting the price target to $31.50.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Michael Pachter has given his Buy rating due to a combination of factors including Unity Software’s strategic shift in its pricing model and its potential for future growth. Unity has moved from a contentious Runtime Fee model to a more transparent subscription-based pricing, which has been well-received by customers and is expected to stabilize the company’s revenue streams.
Furthermore, the introduction of Unity’s AI-driven Vector platform positions the company to compete effectively in the growing mobile game market, despite current competition from AppLovin’s AXON 2.0 platform. While Unity’s ad tech business may face short-term challenges, Pachter anticipates a return to growth by 2026 and further expansion in 2027, driven by both its ad and game engine segments. This optimistic outlook, combined with a strong Q4 performance, justifies the raised price target and Buy rating.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $33.00 price target.