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Research Alert: CFRA Maintains Buy Rating On Shares Of Unity Software Inc.
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Research Alert: CFRA Maintains Buy Rating On Shares Of Unity Software Inc.
Nov 11, 2025 9:08 AM

11:50 AM EST, 11/11/2025 (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 lift our 12-month target to $51 from $38, shifting to an EV/sales of 9x our 2026 revenue estimate. We lift our 2025 EPS view to $0.82 from $0.79 and 2026's to $0.95 from $0.84. We maintain our Buy rating as Unity's Q3 outperformance provides evidence that Vector AI is gaining traction as a legitimate growth driver. The $30M sequential Grow revenue addition and 200-bp adj. EBITDA margin expansion demonstrate improving execution capabilities that support a more constructive view. We believe the 9x multiple appropriately reflects Unity's positioning as a differentiated AI-powered advertising platform rather than traditional gaming software, with comparable ad-tech companies commanding 8x-12x forward sales. While Vector's long-term trajectory remains to be proven as the platform matures beyond its first year, management's commentary on broad-based performance gains and further acceleration suggests the product is resonating with advertisers.

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