Unity Software Inc. (U) shares surged 5.01% in pre-market trading on Friday, following a significant upgrade from Jefferies. The investment bank raised its rating on Unity from Hold to Buy, sparking renewed investor interest in the software development company.
Jefferies not only upgraded Unity's status but also increased its price target for the stock from $22 to $29. This new target represents a substantial upside potential, likely contributing to the positive sentiment among investors. The upgrade comes amid growing optimism about Unity's prospects in the competitive software development landscape.
While Jefferies' move is driving the current rally, it's worth noting that Unity maintains an average rating of "overweight" among analysts polled by FactSet. The mean price target stands at $25.82, suggesting that other analysts also see potential in the stock, albeit not as bullish as Jefferies' new stance. This pre-market surge could signal a shift in market perception of Unity Software, potentially setting the stage for an interesting trading session ahead.
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