Unity Software (U.US) shares surged by almost 8% at the opening of the US stock market after Morgan Stanley upgraded its stance on the company from Equal Weight to Overweight, with Price Target of $22 (currently: $17,22, +5,3%). The stock has been an underperformer on Wall Street (80% behind S&P500) and with somehow bitter-sweet results from Q2 2024 already priced in, analysts bet that there’s a lot of room for a rebound.
"Execution headwinds, management turnover, and a major restructuring led to a significant expectations reset", stated Matthew Cost, who feels “more confident than ever” about Unity’s strategic and competitive position.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوال
After a bullish opening, Unity’s shares have been cooling down, albeit remaining above 20- and 50-period EMAs. Maintaining this position and later challenging the resistance around the $18 mark could help the gaming software company to realize its expected growth. Source: xStation5
According to the latest earnings report, EBITDA has significantly exceeded the consensus for Q2 2024 ($113M against expected $75M-$80M, +28% YoY). In spite of revenue underperformance ($449M vs expected $458,3M, -16% YoY) and customer relations challenges, the company’s game engine has maintained its 70% market share.
