September 26, 2020 | software | No Comments
Unity Software’s (U) – Get Report “growth story has legs,” according to an analyst from D.A. Davidson, who initiated coverage of the game-development-engine company with a buy rating and a $100 price target.
Shares of the San Francisco company at last check were up 2.2% to $85. The price target indicates 20% upside from Thursday’s closing price at $83.20.
Analyst Franco Granda said in a note to clients that “we expect a meaningful revenue ramp in the years ahead.”
Unity currently dominates the mobile-gaming market, which is the largest piece of the overall gaming market and the fastest growing one, Granda said.
The analyst said Unity “has earned this pole-market-share position thanks to its vast creative tools for 2D/3D graphics rendering, cost, and ease of use.”
“We like Unity for four reasons: exposure to the entire gaming market; significant growth opportunities in applications beyond gaming; a hybrid revenue