William Blair analyst Dylan Becker has reiterated their bullish stance on U stock, giving a Buy rating yesterday.
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Dylan Becker has given his Buy rating due to a combination of factors, primarily driven by Unity Software’s impressive second-quarter performance, which surpassed expectations. The company’s strategic improvements in its Vector model have notably contributed to a significant 15% sequential growth in Unity Ads, indicating a positive trend that is expected to continue into the third quarter.
Furthermore, despite the stock’s substantial increase in value prior to the earnings report, Becker remains optimistic about the ongoing enhancements in Unity’s Grow business. This optimism is fueled by the potential for future upward revisions in estimates, supported by management’s effective execution and the company’s turnaround strategy. The anticipated acceleration in growth and improved profitability margins reinforce the Buy rating as Unity is poised for continued success.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $40.00 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.