Wedbush adds Unity to Best Ideas List, raises price target to $55

Wedbush added Unity (U) to the firm’s Best Ideas List and raised the price target on the shares to $55 from $50, while keeping an Outperform rating on the shares. The firm says Unity holds a strong position in the expanding game engine and mobile advertising markets, which should support sustained revenue and profit growth over the coming years. Wedbush considers the shares undervalued at current levels, with potential for revenue and earnings to exceed consensus estimates. This outlook is bolstered by ongoing enhancements to Unity’s advertising platform, core game engine capabilities, and the recent launch of alternative payment solutions, all of which position the company for meaningful long-term expansion, says the firm.