Unity price target lowered to $26 from $32 at UBS

UBS lowered the firm’s price target on Unity (U) to $26 from $32 and keeps a Neutral rating on the shares. The revenue shortfall was driven by weakness in Unity’s Grow segment, particularly ironSource, rather than Vector, which appears to be regaining advertiser budgets, the analyst tells investors in a research note. With shares down roughly 27%, much of the ironSource headwind is likely priced in, and future performance will hinge on faster Vector growth, potential upside from runtime data integration in 2Q26, and whether EBITDA expectations prove too optimistic without increased R&D investment, the firm says.

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