Jefferies raises Unity Software stock price target to $40 on ad growth

Published 06/08/2025, 19:58
Jefferies raises Unity Software stock price target to $40 on ad growth

Investing.com - Jefferies raised its price target on Unity Software (NYSE:U) to $40.00 from $35.00 on Wednesday, while maintaining a Buy rating on the stock. The new target sits near the upper end of Wall Street’s range of $15-$44, with Unity shares currently trading at $31.92. The company has demonstrated strong momentum, posting a 138% return over the past year.

The research firm cited Unity’s second-quarter results as validation of early momentum in its Vector platform, with Unity Ads growing 15% quarter-over-quarter and now representing 49% of the company’s Grow segment.

Jefferies expressed encouragement about Unity’s double-digit percentage Unity Ads growth guidance for the third quarter, along with positive early comments on July and August performance.

The firm also highlighted the upcoming Unity 6.2 framework, which will finally allow compliant use of runtime data for ad targeting in 2026, as a positive development for the company.

While acknowledging that second-quarter results might fall below the most bullish market expectations, Jefferies emphasized that Unity is "clearly moving in the right direction" and remains in the early stages of a multi-quarter build-out.

In other recent news, Unity Software Inc . reported its financial results for the second quarter of 2025, outperforming analyst expectations. The company achieved earnings per share of $0.18, which exceeded the anticipated $0.13 by 38.46%. Additionally, Unity’s revenue reached $441 million, surpassing forecasts by $14.2 million. This marks a significant achievement for the company as it continues to demonstrate strong financial performance. Analysts had projected lower figures, making the actual results noteworthy for investors. The positive earnings report has generated considerable interest and optimism among stakeholders. These developments come amid a competitive market environment, highlighting Unity’s ability to exceed market expectations. Investors may find these results particularly encouraging as they assess the company’s financial trajectory.

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