Piper Sandler Raises Unity Target to $40 on Strong "Grow" Business Execution
Piper Sandler increased its price target for Unity Software to $40 from $35, maintaining an Overweight rating, in recognition of the strong execution within its "Grow" business. The analyst noted impressive rebuild efforts, positive checks on runtime opportunities, and ad-tech improvements. Future projections include $776MM in EBITDA and $1.68BN in Strategic Grow revenue for 2027E, with potential for upside.
Key Takeaways
- Piper Sandler analyst James Callahan raised Unity Software's price target to $40 from $35, maintaining an "Overweight" rating.
- The upgrade is based on impressed execution within Unity's "Grow" business and positive signals on runtime monetization.
- The firm models $776 million in EBITDA and $1.68 billion in Strategic Grow revenue for Unity by 2027.
- The analyst believes AI risks are "overblown" and that Unity could benefit from competitor AppLovin's success.
- Ad-tech improvements, including PSC Network Effects, reportedly show Unity's ad performance returning to May '25 levels.
Why It Matters
This improved outlook suggests increased investor confidence in Unity's advertising and monetization capabilities, particularly its "Grow" segment. For streaming businesses relying on in-app monetization or interactive content, Unity's ad-tech advancements directly impact their potential revenue streams and audience engagement strategies. The positive assessment of Unity's ad-tech, despite broader industry concerns about AI, indicates a potential stabilization and growth in mobile gaming and interactive content monetization. Investors and developers should monitor Unity's Q2 2026 earnings for concrete evidence of continued revenue acceleration in its B2B "Grow" services.
Read full article at msn.com
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