Unity Software’s Promising Growth Outlook Driven by Vector Advertising Model and Strategic Restructuring

In a report released today, Brent Thill from Jefferies upgraded Unity Software (U – Research Report) to a Buy, with a price target of $29.00.

Brent Thill’s rating is based on the potential for Unity Software’s Vector advertising model to significantly boost revenue growth starting in fiscal year 2026. The early signs of improvement in customer returns from Vector, with a notable increase in app installs and in-app purchases, suggest a promising future for Unity’s Grow business. Additionally, the stability in Unity’s Create segment, with a focus on subscription products and expected double-digit growth, further supports this positive outlook.
Thill also highlights the company’s cost discipline following a restructuring, which has led to substantial savings and improved margins. The complete overhaul of the management team, including new leadership, has instilled confidence in the company’s strategic direction. Finally, the valuation of Unity Software is considered reasonable given its growth potential, with an increased price target reflecting the anticipated benefits from Vector and pricing strategies.

Thill covers the Technology sector, focusing on stocks such as Adobe, Intuit, and Microsoft. According to TipRanks, Thill has an average return of 13.2% and a 66.33% success rate on recommended stocks.