Unity Software 2027 Revenue Target Achievable but Not Likely Beatable, Deutsche Bank Says

MT Newswires Live
Oct 22

Unity Software (U) is poised to resume revenue growth with improved leadership and enhanced ad technology, following ad network share losses, Deutsche Bank said Wednesday.

According to the report, Unity will likely meet the 7% compound annual growth rate revenue target for 2024 to 2027 but is unlikely to outperform, even if Vector matches AppLovin's (APP) Axon performance.

Deutsche Bank is positive on Unity's Create segment and Unity 6 adoption but expects limited revenue gains due to cautious pricing after the runtime fee backlash.

The company's engine, used in 70% of top mobile games, offers valuable runtime data, but AppLovin leads in AI ads and e-commerce, the analyst noted.

The firm has a Hold rating on the stock with a price target of $39.

Shares of Unity Software were down 2.8% in recent Wednesday trading.

Price: 35.43, Change: -0.86, Percent Change: -2.37

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