Unity Software Price Targets Slashed to $38 and $27 after Q4 EPS Cut
Wells Fargo cut Unity Software’s price target from $54 to $38 after citing lower Q4 EPS and weaker Q1 guidance due to IronSource underperformance and Create segment seasonality, yet maintained an Overweight rating based on strong runtime data and expected ad network gains. Goldman Sachs trimmed its target from $47 to $27 and upheld a Neutral rating, noting Vector platform traction, solid Create results and long-term monetization efforts in China.
1. Analyst Price Target Adjustments
On February 12 Wells Fargo cut Unity’s price target from $54 to $38 and maintained an Overweight rating, while Goldman Sachs trimmed its target from $47 to $27 and kept a Neutral rating.
2. Q4 Results and Q1 Guidance Pressures
Both firms cited reduced fourth-quarter earnings per share and weaker first-quarter guidance driven by deteriorating IronSource performance and significant seasonality in the Create segment.
3. Core Growth Drivers and Long-Term Outlook
Analysts highlighted strong runtime data supporting future Ad Network market share gains, solid traction in the Vector platform, steady Create segment performance and ongoing focus on revenue growth, profitability expansion and China monetization opportunities.