01:20 PM EDT, 05/10/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $35 from $43 on an EV/sales multiple of 10x our '25 revenue estimate, above the peer average. We up our '24 EPS view to $0.96 from $0.62 and keep '25's at $1.41. U posted Q1 EPS of $0.34 vs. $0.06, beating consensus by $0.29. Revenue of $460M (-8%) was driven by a 17% increase in Create Solutions on growth in subscriptions and strategic partnerships, partially offset by a 4% decline in Grow Solutions. We expect Create Solutions to sustain its momentum, bolstered by game subscription growth and the expansion of LiveOps, while we expect Grow Solutions to regain traction supported by product enhancements in 2H 24. We see '24 being a transitional year as U executes a strategic revamp, including business exits and $250M in cost reductions (including headcount). These measures should improve margins and aid in growth going forward starting 2H 24. Post-reset, we anticipate U reigniting growth through mobile ad recovery, the Unity 6 launch later this year, and strategic partnerships.