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Analysts Positive on Unity Software (U), BofA Upgrades Rating
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Unity Software Inc. (NYSE:U) is one of the 11 Best Tech Stocks Under $50 to Buy Now. On March 13, Wedbush reiterated its Outperform rating on Unity Software Inc. (NYSE:U) with a price target of $30 on the stock. Earlier, on March 3, BofA Securities upgraded its rating on Unity Software Inc. (NYSE:U) from Underperform to Neutral and raised its price target on the stock from $18 to $19. The research firm noted that the balance of risk has improved for the company. BofA highlighted that weaker-than-expected guidance for the first quarter has likely lowered buy-side estimates for 2026, which reduces the risk of further cuts. The research firm also sees near-term catalysts for Unity Software Inc. (NYSE:U) as balanced. BofA pointed to the company’s technology roadmap, which was showcased at the Game Developers Conference from March 9 to March 13. The firm believes this could support a consumption-based revenue model or increase payments from the long tail of non-paying users. Additionally, BofA Securities noted that the upcoming use of run-time data for ad targeting, starting in the second quarter, could also prove to be a valuable strategic asset for Unity Software Inc. (NYSE:U). The research firm said it would wait for aggressive guidance for Q2 2026 as a sign of a sustained acceleration in the company’s Grow segment. Unity Software Inc. (NYSE:U) is an American video game software development company that is known for its game creation engine used to create video games and other applications. The company offers a range of tools to develop, deploy, and grow games and interactive experiences across all major platforms. While we acknowledge the potential of U as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Under-the-Radar Stocks to Buy According to Hedge Funds and 10 Best Stocks Under $20 to Buy According to Hedge Funds. Disclosure: None. Follow Insider Monkey on Google News.
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