During the last three months, 14 analysts shared their evaluations of Unity Software (NYSE:U), revealing diverse outlooks from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 5 | 5 | 0 | 1 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 3 | 2 | 0 | 0 |
| 3M Ago | 2 | 2 | 2 | 0 | 1 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $35.34, a high estimate of $44.00, and a low estimate of $24.00. This upward trend is apparent, with the current average reflecting a 20.9% increase from the previous average price target of $29.23.
Deciphering Analyst Ratings: An In-Depth Analysis
A clear picture of Unity Software's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Mohammed Khallouf | HSBC | Raises | Hold | $40.80 | $37.50 |
| Matthew Cost | Morgan Stanley | Raises | Overweight | $40.00 | $25.00 |
| Alec Brondolo | Wells Fargo | Raises | Equal-Weight | $29.00 | $24.00 |
| Ross Sandler | Barclays | Raises | Equal-Weight | $30.00 | $25.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $35.00 | $30.00 |
| Alicia Reese | Wedbush | Raises | Outperform | $41.00 | $39.00 |
| Bernie McTernan | Needham | Raises | Buy | $40.00 | $30.00 |
| Alicia Reese | Wedbush | Maintains | Outperform | $39.00 | $39.00 |
| Jason Bazinet | Citigroup | Raises | Buy | $44.00 | $29.00 |
| Jake Fuller | BTIG | Announces | Sell | $25.00 | - |
| Michael Pachter | Wedbush | Raises | Outperform | $39.00 | $31.50 |
| Chris Kuntarich | UBS | Raises | Neutral | $33.00 | $22.00 |
| Brent Thill | Jefferies | Raises | Buy | $35.00 | $29.00 |
| Alec Brondolo | Wells Fargo | Raises | Equal-Weight | $24.00 | $19.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Unity Software. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Unity Software compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Unity Software's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
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.
Unveiling the Story Behind Unity Software
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, and key revenue is derived from the EMEA region. The products are used in the gaming industry, retail, automotive, architecture, engineering, and construction.
Financial Insights: Unity Software
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Challenges: Unity Software's revenue growth over 3M faced difficulties. As of 30 June, 2025, the company experienced a decline of approximately -1.85%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Unity Software's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -24.67%, 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 -3.41%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Unity Software's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.63%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Unity Software's debt-to-equity ratio stands notably higher than the industry average, reaching 0.7. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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