Analyst Bernie McTernan of Needham maintained a Buy rating on Unity Software, with a price target of $50.00.
Claim 30% Off TipRanks
Forget margin or options. Here's how the pros trade UBernie McTernan has given his Buy rating due to a combination of factors, starting with Unity’s stronger‑than‑expected fourth‑quarter performance, where adjusted EBITDA exceeded forecasts on the back of solid Create revenue and improved profitability. While first‑quarter EBITDA guidance is softer and Create revenue is projected below prior expectations, he notes this seasonal weakness is consistent with past first quarters and does not alter the longer‑term outlook.
He also highlights that the Grow segment met expectations, with Vector delivering mid‑teens sequential growth and now representing a majority of that segment’s revenue, even as legacy ironSource‑related revenue declined. McTernan views management’s flat near‑term Grow guidance as prudently conservative, and he is encouraged by Vector’s momentum and the potential upside from leveraging run‑time data and upgrading the legacy ad stack over time, supporting a favorable risk‑reward profile for the stock.
In another report released yesterday, Oppenheimer also upgraded the stock to a Buy with a $38.00 price target.