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Investing.com - Cannonball Research upgraded Unity Software (NYSE:U) stock rating from Neutral to Buy and raised its price target to $54.00 on Thursday. Unity shares currently trade at $38.37, up from their 52-week low of $15.33 but below their high of $46.94.
The research firm’s upgrade is based on its belief that Unity Vector will drive upside to estimates for multiple quarters. Cannonball Research also sees potential for the tech upgrade cycle to benefit other solutions in Unity’s Grow segment. This optimism aligns with InvestingPro data showing three analysts have recently revised their earnings upwards for Unity.
The firm stated that the initial success of Unity Vector makes Unity’s story "simpler and more compelling." According to Cannonball Research, if their thesis proves correct, the stock will see increased sponsorship from long-only investors, which should support the valuation multiple. The market has already shown confidence in Unity, with the stock delivering an impressive 81.32% return over the past year.
Cannonball Research noted that the bull case could gain further support in FY26 when Unity Vector begins using Runtime data for targeting.
The new $54 price target represents Cannonball Research’s twelve-month outlook for Unity Software shares, as outlined in its Thursday research note.
In other recent news, Unity Software reported strong financial results for the third quarter of 2025, with revenue reaching $471 million and EBITDA at $109 million, surpassing FactSet consensus estimates of $450 million and $95 million, respectively. This performance prompted Oppenheimer to maintain its Perform rating on the company. Meanwhile, Macquarie upgraded Unity Software from Neutral to Outperform, raising its price target to $50.00 from $33.00, due to increased confidence in the company’s long-term growth prospects, particularly the improvements in Unity’s Vector platform and Ad Network. Additionally, Unity announced a strategic partnership with Epic Games, allowing Unity-built games to be published within Fortnite’s ecosystem, which boasts over 500 million registered accounts. This collaboration was revealed at Unity’s Annual Developer Conference and aims to expand Unity’s reach in the gaming industry. The partnership also includes support for Unreal Engine in Unity’s cross-platform commerce platform, expected in early 2026. Citizens has reiterated its Market Outperform rating on Unity Software, maintaining a price target of $45.00. These developments reflect Unity’s ongoing efforts to enhance its gaming ecosystem and drive growth.
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