Morgan Stanley Forecasts Strong Price Appreciation for Unity Software (NYSE:U) Stock

27 Mar 2026, 17:42 by Danessa Lincoln · The Markets Daily

Unity Software (NYSE:U – Get Free Report) had its price target upped by stock analysts at Morgan Stanley from $30.00 to $32.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Morgan Stanley’s target price indicates a potential upside of 72.73% from the company’s current price.

U has been the topic of several other reports. Citizens Jmp reissued a “market outperform” rating and issued a $37.00 price objective on shares of Unity Software in a research report on Friday. BTIG Research dropped their target price on Unity Software from $41.00 to $39.00 and set a “buy” rating on the stock in a report on Friday. Piper Sandler upgraded Unity Software from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $43.00 to $59.00 in a report on Thursday, December 11th. Barclays lowered their price objective on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating for the company in a research report on Thursday, February 12th. Finally, The Goldman Sachs Group dropped their price objective on shares of Unity Software from $47.00 to $27.00 and set a “neutral” rating on the stock in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $37.41.

Check Out Our Latest Stock Report on U

Unity Software Trading Up 8.1%

U stock traded up $1.40 during midday trading on Friday, reaching $18.53. 32,901,784 shares of the company’s stock traded hands, compared to its average volume of 17,761,686. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84. Unity Software has a fifty-two week low of $15.33 and a fifty-two week high of $52.15. The business has a 50-day moving average price of $24.77 and a two-hundred day moving average price of $35.99. The company has a market capitalization of $8.02 billion, a P/E ratio of -19.16, a PEG ratio of 9.55 and a beta of 2.14.

Unity Software (NYSE:U – Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.30) earnings per share. Equities research analysts forecast that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Transactions at Unity Software

In other news, CFO Jarrod Yahes sold 6,205 shares of the firm’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $21.03, for a total transaction of $130,491.15. Following the completion of the sale, the chief financial officer owned 728,381 shares of the company’s stock, valued at approximately $15,317,852.43. This trade represents a 0.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Alexander Blum sold 2,541 shares of the company’s stock in a transaction on Friday, February 27th. The shares were sold at an average price of $18.76, for a total transaction of $47,669.16. Following the completion of the sale, the chief operating officer directly owned 548,425 shares in the company, valued at $10,288,453. This represents a 0.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 41,684 shares of company stock valued at $773,350. 3.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

A number of hedge funds have recently bought and sold shares of U. Root Financial Partners LLC acquired a new position in Unity Software during the 3rd quarter valued at approximately $27,000. REAP Financial Group LLC acquired a new stake in Unity Software in the fourth quarter worth $28,000. Larson Financial Group LLC lifted its stake in Unity Software by 88.1% in the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after buying an additional 341 shares during the last quarter. V Square Quantitative Management LLC bought a new stake in Unity Software in the fourth quarter valued at $30,000. Finally, IFP Advisors Inc acquired a new position in shares of Unity Software during the third quarter valued at $33,000. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software News Roundup

Here are the key news stories impacting Unity Software this week:

Positive Sentiment: Preliminary Q1 beat — Unity guided Q1 revenue of $505M–$508M (vs prior $480M–$490M) and Adjusted EBITDA of $130M–$135M (vs $105M–$110M), driven by Unity V performance; this materially improves the near‑term profit outlook. BusinessWire Release
Positive Sentiment: Strategic overhaul — Unity said it will exit non‑strategic ad businesses and streamline operations to enhance growth and profitability, boosting confidence in margin recovery and cash generation. ProactiveInvestors
Positive Sentiment: M&A/China sale chatter — Market reports highlight renewed talk of a China-related sale or strategic transaction, adding speculative upside to the stock while the story develops. 247WallStreet
Positive Sentiment: Analyst support — Multiple firms reiterated or maintained bullish stances (Citizens/JMP market outperform with $37 PT; Wedbush outperform $30; Needham buy $35; BTIG buy with a high PT), signaling continued conviction among some Wall Street investors. Benzinga roundup
Neutral Sentiment: Bank of America raised its price target to $21 and kept a neutral rating — a modest positive signal but still conservative versus other shop targets. TickerReport
Neutral Sentiment: Mixed analyst moves — Some firms trimmed price targets (e.g., Wells Fargo cut PT to $29) even as they keep overweight/buy calls; this leaves consensus upside but shows lingering debate on valuation. Benzinga roundup
Negative Sentiment: Competitive headwinds in adtech — Analyst commentary comparing Unity to peers (Digital Turbine/APPS) highlights ad platform weakness (ironSource) and argues other adtech names may have stronger near‑term fundamentals. Zacks
Negative Sentiment: Macro risk — Softer US futures and broader market volatility could cap gains if sentiment worsens; this is a general market headwind rather than company‑specific. Yahoo Finance

About Unity Software

(Get Free Report)

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.