U Maintained by Wells Fargo -- Price Target Raised to $53

Wedbush raised its price target for Unity Software Inc. to $55 from $50, citing growing adoption of its Vector advertising platform. The broker expects Unity to report Q3 revenue of $567M and adjusted EBITDA of $187M, with strategic growth revenue forecasted at $385M. Wedbush anticipates Vector's contribution to become more visible in Q4 results and throughout 2027, while noting AppLovin's MAX platform as a risk.

Unity Software (NYSE:U) stock rose 5.15% on Friday, supported by analyst upgrades and a partnership with Alphabet's Google. Analysts cited strong performance in Unity's Grow business and the Google deal, which combines AI and consumer reach. Price targets were raised to $53-$54 by Jefferies, Raymond James, and BTIG. The stock is trading above key moving averages, with resistance at $48.50 and support at $40.

Alphabet (GOOGL) and Unity (U) have formed a partnership to enhance game development using generative AI. Unity reported positive Q2 earnings of $0.28 per share, beating estimates, with revenue up 24% YoY. Analysts project 96% earnings growth. The deal helps Unity avoid infrastructure costs while Alphabet leverages its cloud. Roblox (RBLX), facing financial strain, may be threatened by this alliance, with insider sales noted before the announcement.

A San Francisco judge denied AppLovin's request to halt Unity's Ad Quality SDK, sending the case to arbitration. AppLovin alleges Unity's tool collects its proprietary ad auction data, violating contracts and misappropriating trade secrets. AppLovin shares fell over 5% on the news, while Unity's stock showed no significant reaction. The dispute highlights tensions between the two mobile gaming infrastructure companies.

Unity Software (U) shares rose 2% premarket after Raymond James upgraded it to Outperform and raised its price target to $50.01. The upgrade was driven by strong growth in Unity's core segments and a strategic partnership with Google to integrate AI tools. Unity's P/S ratio is 9.67, above its historical median, reflecting market expectations of robust future growth. The company remains unprofitable, with a GF Score of 65/100, indicating moderate overall fundamental health.

Unity Software (U) shares rose 2% to $46.51 after CEO Matthew Bromberg discussed plans for Unity Spark, a Google-built platform, to eventually reach game consoles. Roblox (RBLX) and Take-Two (TTWO) stocks showed minimal movement. Unity's partnership with Google aims to expand its creator platform across all devices, with consoles as a long-term goal. The company's stock is still below its 52-week high of $52.15.