Unity Software stock rises after Jefferies raises price target
Investing.com
Published Jul 16, 2025 08:28AM ET
Investing.com -- Unity Software (NYSE:U) stock rose 8% in pre-market trading Wednesday after Jefferies analyst Brent Thill raised his price target on the gaming software company to a Street-high $35 from $29 previously.
The upgrade follows improving sentiment around Unity's Vector product, with Thill noting an increase in positive mentions to 9 in the second quarter from 7 in the first quarter. The analyst also highlighted that Return on Ad Spend (ROAS) lift improved to the 10%-20% range, up from 5%-7% in the previous quarter.
"We expect the impact of Vector to be seen over multiple quarters, and are overall encouraged by the quarter-over-quarter improvement," Thill wrote in his note to clients. The analyst also observed that 2025 share intent increased to 119 basis points YoY from 19 basis points in the first quarter survey.
On Unity's engine business, Thill pointed out that Unity 6 usage is approaching 50% of respondents and is now the most-used Unity engine, indicating stable growth in the company's Create segment.
"We raise '25 and '26 rev by 2% and 3% respectively, driven by Grow improvement," Thill noted. The analyst now forecasts Unity's Grow segment to increase 2% YoY in 2025, revised from a previous estimate of -1%, and projects 10% YoY growth in 2026, up from 8% previously.
Jefferies also raised its EBITDA estimates by 11% and 9% for 2025 and 2026, respectively, with the new price target based on 32 times 2026 estimated EBITDA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.