Jefferies Lifts Unity Software (U) Price Target, Keeps Buy Rating

Unity Software Inc. (NYSE:U) is one of the 10 Best Tech Stocks Under $50 To Invest In. On July 16, Jefferies analyst Brent Thill increased the price target for Unity Software Inc. (NYSE:U) from $29 to $35 while maintaining a “Buy” rating.

This decision comes as the sentiment is improving around the company’s Vector product, an AI-powered advertising platform. Thill pointed out that this product saw positive mentions increase from 7 in the first quarter to 9 in the second quarter. The analyst also noted that the Return on Ad Spend (ROAS) improved to the 10%-20% range, up from 5%-7% in Q1 2025.

Jefferies Lifts Unity Software (U) Price Target, Keeps Buy Rating

A software engineer coding while surrounded by the latest industry tools and technology.

Thill wrote that the impact of Vector is expected to be seen over multiple quarters. The analyst is encouraged by the quarter-over-quarter progress.

For Unity Software Inc.’s (NYSE:U) engine business, Thill pointed out that Unity 6 is now the most-used engine by the company as its usage is reaching 50% of respondents, showing stable growth in the company’s Create segment.

Jefferies increased its revenue forecasts for Unity Software Inc. (NYSE:U) by 2% in 2025 and 3% in 2026. The firm also increased its EBITDA estimates by 11% for 2025 and 9% for 2026.

Unity Software Inc. (NYSE:U) is an American video game software development company that is known for its game creation engine used to create video games and other applications. The company offers a range of tools that help developers create, market, and grow video games and other applications across all major platforms.

While we acknowledge the potential of U as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than U and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.