U - 1 Wall Street Analyst Cut Unity Software's Price Target by 33%: Here's Why He's Right
2024-02-29 05:57:00 ET
With earnings season in full swing, Unity Software (NYSE: U) reported its fourth-quarter financial results after the market closed on Monday. Revenue exceeded expectations but investors were underwhelmed by management's 2024 guidance for the tech company.
One analyst was so disappointed in what he saw and heard in the report that he slashed his price target on the software specialist's stock from $50 to $33.50, representing a 33% decrease from what he had previously forecast.
Michael Pachter, an analyst at Wedbush Securities, will say that Unity Software has moved in the right direction. For one, Unity is focusing on its bread-and-butter business: developing its game engine. This stems from the company's commitment to improving its game engine, cloud hosting, and monetization efforts. Secondly, it plans on building out its real-time 3D capabilities for non-gaming customers.
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1 Wall Street Analyst Cut Unity Software's Price Target by 33%: Here's Why He's Right