Jefferies Upgrades Unity Software Inc. to 'Buy' Amid Revenue Growth Optimism

Published 1 days agoU

Jefferies Upgrades Unity Software Inc. to 'Buy' Amid Revenue Growth Optimism

Jefferies has upgraded Unity Software Inc. (NYSE: U) to a 'Buy' rating, emphasizing the expectation of accelerating revenue growth. This change on October 19, 2023, came with an increased price target of $28, up from the previous 'Underperform' rating. Nasdaq reported this move, highlighting the analyst's optimistic outlook on Unity's performance.

The upgrade stems from anticipated growth in Unity's 'Create' segment, expected to boost revenues in the first half of the year. Benzinga reported on the company's strategic developments, notably the launch of 'Vector,' a self-learning AI platform designed to enhance ad performance, further supporting confidence in Unity's future financial results.

Despite a 25% year-over-year revenue drop in the fourth quarter of 2024, Unity managed to exceed analyst expectations with $457 million. Benzinga also noted Unity's strong market presence, with its technology used in a major portion of top mobile games. With these strategic advancements, Unity aims to solidify its position and capitalize on growth opportunities.

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