Gold prices near 3-week high; could reach $4,700/oz - UBS
Investing.com - Goldman Sachs raised its price target on Unity Software (NYSE:U) to $42.00 from $38.00 while maintaining a Neutral rating on the stock. Unity shares currently trade at $42.36 with a market capitalization of $17.83 billion.
The firm’s decision follows Unity’s Q3 2025 earnings report, which showed solid total revenue growth and a positive Q4 outlook driven by strength across both the Create and Grow segments.
Goldman Sachs noted that Unity’s Create business is benefiting from price increases and positive secular tailwinds for the industry, while the Grow segment is building momentum as Vector AI continues to scale. InvestingPro data shows Unity has delivered impressive returns, with the stock price surging 67.07% over the past six months.
Despite targeted investments to scale Vector, the company demonstrated high incremental margins with management reiterating a commitment to balancing growth and profitability over the long term. Analysts expect Unity to be profitable this fiscal year with an EPS forecast of $0.86.
Goldman Sachs views Unity as exiting a period of disruption and positioned to reaccelerate topline growth in the coming years, but questions whether this expected growth reacceleration is already priced in at current valuation levels. This aligns with InvestingPro analysis, which indicates Unity appears overvalued based on its Fair Value assessment. For deeper insights into Unity’s valuation and growth prospects, check out the comprehensive Pro Research Report available for this and 1,400+ other US equities.
In other recent news, Unity Software reported impressive third-quarter 2025 earnings, with revenue reaching $471 million, surpassing the forecast of $452.76 million. The company also posted an earnings per share of $0.20, significantly exceeding the anticipated $-0.23. Following these results, Citizens raised Unity’s stock price target to $45, maintaining a Market Outperform rating, citing the company’s strong performance. Additionally, Morgan Stanley increased its price target for Unity Software to $48 from $44, while keeping an Overweight rating. This adjustment was based on Unity’s quarterly results, which showed positive organic growth in both business segments for the first time in nearly four years. Unity’s revenue and EBITDA exceeded Morgan Stanley’s expectations by 5% and 16%, respectively. These developments highlight the company’s robust financial performance and positive outlook from analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.