Analysts' ratings for Unity Software ( U ) over the last quarter vary from bullish to bearish, as provided by 10 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Unity Software ( U ) and provided 12-month price targets. The average target is $26.4, accompanied by a high estimate of $33.00 and a low estimate of $22.00. Observing a 19.46% increase, the current average has risen from the previous average price target of $22.10.

Decoding Analyst Ratings: A Detailed Look

The perception of Unity Software ( U ) by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Unity Software ( U ). This insight gives a snapshot of analysts' perspectives on the current state of the company.

Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Unity Software ( U ) compared to the broader market.

Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Unity Software's ( U ) stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Unity Software's ( U ) market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Unity Software ( U ) analyst ratings.

All You Need to Know About Unity Software

Unity Software Inc ( U ) provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC, and other Americas, and key revenue is derived from the EMEA region. The products are used in the gaming industry, retail, automotive, architecture, engineering, and construction.

Understanding the Numbers: Unity Software's Finances

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Unity Software's ( U ) revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -24.98%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Unity Software's ( U ) net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -26.85%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Unity Software's ( U ) ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.85%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Unity Software's ( U ) ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.82%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 0.7, Unity Software ( U ) faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.