Unity Stock Jumps After Jefferies Upgrade—Here's What Changed

Unity Software Inc. U stock gained momentum on Wednesday after Jefferies analyst Brent Thill raised the price target from $29 to $35 while maintaining a Buy rating.

Over the past three months, seven analysts have issued ratings on Unity, ranging from bullish to somewhat bearish, with four maintaining a positive stance. The 12-month average price target now stands at $26.57, a 2.78% drop from the previous average, reflecting slightly tempered expectations. Forecasts vary significantly, with a high of $35 and a low of $15, according to Benzinga Insights.

Notably, Bank of America’s Omar Dessouky reinstated coverage on Unity with an “Underperform” rating and a $15 target, contrasting sharply with Jefferies’ bullish outlook.

Also Read: Unity Shares Are On a Three-Month Climb: What’s Going On?

Overall, analysts maintain a mixed but cautiously optimistic view on Unity, with most leaning bullish. Despite a slight decline in the average target, many still see upside potential, although views diverge due to uncertainty surrounding the company’s execution and future growth.

Unity, best known for its video game development platform, is gaining recognition as an emerging player in artificial intelligence. The company recently launched AI-powered tools to enhance developer productivity by automating complex and repetitive tasks. According to Unity’s research, 96% of developers are already integrating AI into their workflows, positioning the company as a key contender in the AI-driven software landscape beyond gaming.

The stock has a 52-week high of $30.88 and a 52-week low of $13.90, representing a peak-to-trough decline of approximately 55%.

Price Action: At the last check on Wednesday, U shares were trading higher by 12.02% at $33.26.

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