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4:51 PM · 3 September 2024

Unity Software will finally outperform the market? 🎮

Unity Software
Stocks
U.US, Unity Software Inc
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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.

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.


 
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