Citizens JMP reiterates Market Outperform rating on Alphabet stock

Investing.com - Citizens JMP analyst Andrew Boone reiterated a Market Outperform rating on Alphabet (NASDAQ:GOOGL) with a price target of $250.00. For Unity (NYSE:U), InvestingPro data shows remarkable momentum with a 150% return over the past year, though current analysis suggests the stock is trading above its Fair Value.

The analyst noted that web checkout systems are improving profitability across the mobile ecosystem, based on conversations with third-party checkout providers FastSpring and Paddle.

These providers reported that their clients benefit from moving to website checkout despite experiencing approximately 10% reduction in conversion rates, as this shift reduces Apple’s 30% take rate to just 5%.

Boone indicated this trend is positive for game developers and their advertising partners, specifically naming Meta (NASDAQ:META), Google (NASDAQ:GOOGL), and Unity (NYSE:U).

The analyst also highlighted potential benefits for digital app businesses including Duolingo, Life360, Grindr, and Peloton (NASDAQ:PTON).

In other recent news, Unity Software reported second-quarter revenue and EBITDA that exceeded the high end of guidance by $15.9 million and $15.5 million, respectively. This strong performance led JMP Securities to raise its price target on Unity Software to $35, maintaining a Market Outperform rating. Needham also increased its price target to $40, citing Unity’s better-than-expected results and strategic positioning in the mobile gaming ecosystem. Jefferies echoed this sentiment by raising its price target to $40, highlighting the growth in Unity Ads, which saw a 15% increase quarter-over-quarter. Wells Fargo adjusted its price target to $29, noting Unity’s second-quarter revenue guidance, which aligns closely with consensus estimates. Oppenheimer maintained a Perform rating, pointing to mixed results from Unity’s Vector platform, despite the 15% revenue growth in Unity’s Ad Network. These developments underscore the varied analyst perspectives on Unity’s recent performance and future potential.

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