Unity Software Inc. (NYSE:U) shares are rising Monday. Piper Sandler analyst James Callahan reiterated the rating and price target on the stock ahead of the company’s third-quarter report. Here’s what you should know.
- Unity Software stock is among today’s top performers. Why is U stock surging?
Piper Sandler Stays Bullish On Unity Ahead of Earnings
Piper Sandler reiterated an Overweight rating and a $55 price target on Unity. Piper Sandler says it remains a buyer going into the third-quarter report.
PSC mobile gaming data points to continued momentum, Callahan said. Callahan also sees room for analysts to raise their estimates for Unity. The earnings report is the next event to watch, and higher estimates are the possible payoff.
Callahan flagged one risk. Broader macro pressure, such as a higher cost of supply, could weigh on Unity.
Piper Sandler Sees Unity’s Legal Fight With AppLovin as a Positive
Piper Sandler also points to Unity’s dispute with AppLovin. AppLovin asked a California court for a temporary restraining order to restrict Unity from collecting certain data through its Ad Quality software. AppLovin alleges Unity improperly gathered data tied to its ads, and Unity has disputed that.
Callahan said the lawsuit news is positive for Unity, including the denial of the restraining order. Piper Sandler’s checks on the Ad Quality software are also quite positive, Callahan said.
U Shares Are Moving Higher
U Price Action: Unity shares were up 5.30% at $45.92 at the time of publication on Monday, according to Benzinga Pro.
Image: Shutterstock
Login to comment