Analyst Scoreboard: 4 Ratings For Unity Software

In the preceding three months, 4 analysts have released ratings for Unity Software U, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $31.0, a high estimate of $37.00, and a low estimate of $20.00. Observing a 34.78% increase, the current average has risen from the previous average price target of $23.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Unity Software among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Unity Software. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Unity Software compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Unity Software's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Unity Software analyst ratings.

Delving into Unity Software's Background

Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC and Other Americas, of which key revenue is derived from the EMEA region. The products are used in the gaming industry, architecture and construction sector, animation industry, and designing sector.

Key Indicators: Unity Software's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Unity Software displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 68.55%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Unity Software's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -22.8%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Unity Software's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.71%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.64%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.84.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.