Forecasting The Future: 16 Analyst Projections For Unity Software

Benzinga · 05/08 20:00

16 analysts have shared their evaluations of Unity Software (NYSE:U) during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 3 10 0 0
Last 30D 2 0 1 0 0
1M Ago 0 1 2 0 0
2M Ago 0 1 4 0 0
3M Ago 1 1 3 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $25.69, along with a high estimate of $33.00 and a low estimate of $16.00. Highlighting a 0.16% decrease, the current average has fallen from the previous average price target of $25.73.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Unity Software by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Ross Sandler Barclays Lowers Equal-Weight $25.00 $26.00
Parker Lane Stifel Lowers Buy $28.00 $35.00
Bernie McTernan Needham Lowers Buy $30.00 $33.00
Matthew Cost Morgan Stanley Lowers Overweight $25.00 $32.00
Chris Kuntarich UBS Lowers Neutral $22.00 $30.00
Alec Brondolo Wells Fargo Lowers Equal-Weight $19.00 $22.00
Andrew Uerkwitz Jefferies Lowers Hold $16.00 $24.00
Andrew Uerkwitz Jefferies Lowers Hold $24.00 $28.00
Andrew Boone Citizens Capital Markets Announces Market Outperform $30.00 -
Tim Nollen Macquarie Raises Neutral $24.00 $16.00
Alec Brondolo Wells Fargo Lowers Equal-Weight $22.00 $27.00
Matthew Cost Morgan Stanley Raises Overweight $32.00 $26.00
Alec Brondolo Wells Fargo Raises Equal-Weight $27.00 $20.00
Andrew Uerkwitz Jefferies Raises Hold $28.00 $23.00
Bernie McTernan Needham Raises Buy $33.00 $26.00
Ross Sandler Barclays Raises Equal-Weight $26.00 $18.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Unity Software. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Unity Software compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Unity Software's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Unity Software's market standing. Stay informed and make data-driven 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, 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 exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Unity Software's revenue growth over a period of 3M has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -24.98%. This indicates a decrease in the company's 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 -26.85%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Unity Software's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.85%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Unity Software's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.82%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.7, Unity Software faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

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.

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