Unity Software Shares Pop As Analysts Hail Stock Following Q2 Earnings Beat

Goldman Sachs analyst Kash Rangan initiated coverage of Unity Software Inc U with a Buy rating and $135 price target, implying a 26% upside after Unity's strong Q2 results,
Rangan sees the company as well-positioned to benefit from multiple compounding pivots in the gaming software industry following the strong Q2 results.
Unity's core design engine has greater than 50% market share in global mobile game development, allowing it to ingest over 50 billion unique data points daily from its 3.4 billion MAUs, which drives his conviction.
Stifel analyst Tom Roderick raised the price target to $135 from $125 and maintained a Buy.
Unity posted a $32 million revenue beat for the quarter, with Operate accounting for the entirety of the beat, growing at 63% Y/Y off a tough compare, Roderick notes.
He thinks traditional back-to-school seasonality and broader conservatism keep this beat and raise the story right on track.
Piper Sandler analyst Brent Bracelin raised the price target to $152 from $150, implying a 41.9% upside, and affirmed an Overweight.
Operate revenue growth of 25% Q/Q and 63% Y/Y as Unity gained share from general-purpose ad networks in Q2 show that investor fears about IDFA privacy changes proved to be overly pessimistic, Bracelin notes.
Unity remains well-positioned for durable share gains post-IDFA and has untapped potential to further expand the footprint inside and outside of gaming. Bracelin reiterates the stock as a top second-half idea for growth investors.
Price Action: U shares traded higher by 13.2% at $121.30 on the last check Wednesday.

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