Is Unity Software Stock Going to $30? 1 Wall Street Analyst Thinks So.

Core Viewpoint - Unity Software's stock has declined 90% from its peak in 2021, but analysts remain optimistic about its turnaround potential [1][2] Financial Performance - Unity's revenue fell 17% in 2024, but fourth-quarter results exceeded expectations [3] - Analysts predict a 2% revenue decline for Unity this year, followed by a 10% growth in 2026 [5] Analyst Insights - JMP Securities upgraded Unity's stock to outperform (buy) with a price target of $30, indicating a 36$21.95 [2] - The average 12-month price target from Wall Street is $28.95, suggesting a generally positive outlook [2] Growth Catalysts - The new Unity Vector ad network, powered by AI, is expected to enhance competitive positioning and long-term growth prospects [3] - The launch of Unity 6 graphics engine has seen 2.8 million downloads, contributing to a 15% year-over-year growth in subscription revenue [4] Challenges Ahead - Management indicated that it will take time for Unity Vector to yield positive business results [6] - Analysts expect Unity to report losses this year, which may hinder stock performance unless revenue growth accelerates significantly [6]