Michael Pachter, an analyst from Wedbush, reiterated the Buy rating on Unity Software (U – Research Report). The associated price target remains the same with $31.50.
Michael Pachter has given his Buy rating due to a combination of factors that highlight Unity Software’s promising growth trajectory. The company reported strong Q1:25 results, surpassing revenue expectations and demonstrating effective integration of its Vector solution into its existing ad technology. Despite the uncertainty surrounding the pace of Unity’s growth in the coming years, Pachter expresses confidence that current growth estimates are conservative and likely to be exceeded.
Furthermore, Unity’s strategic positioning in a high-growth market and the potential of its Vector platform to compete with established competitors like AppLovin’s AXON 2.0 platform are key considerations in Pachter’s analysis. He anticipates that Unity’s revenue will experience modest growth in 2025, followed by more significant increases in subsequent years, driven by its ad platform and game engine. This outlook, combined with a sustainable growth potential and a premium valuation, supports the Buy rating and the reiterated price target of $31.50.
Pachter covers the Communication Services sector, focusing on stocks such as Getty Images Holdings, Electronic Arts, and fuboTV. According to TipRanks, Pachter has an average return of -5.1% and a 43.27% success rate on recommended stocks.