Unity price target raised to $40 from $35 at Jefferies

Jefferies raised the firm’s price target on Unity (U) to $40 from $35 and keeps a Buy rating on the shares. The firm believes the company’s Q2 report validate the early momentum at Vector. The Q3 outlook for double-digit Unity Ads and management’s comments on July and August is encouraging, the analyst tells investors in a research note. Jefferies admits that Unity’s Q2 is below the most bullish expectations, but believes the company is “clearly moving in the right direction.” The stock in afternoon trading is down 6% to $31.96.