Investing.com -- HSBC upgraded Unity Software (ETR:SOWGn) to Buy from Hold given a stronger-than-expected fourth-quarter results and growing momentum in its game engine business. The firm raised its price target to $34 from $20.70, which implies a 21% upside.
“Unity engine (is) showing growing momentum and rollout of new ad model is a potential gamechanger,” analyst at HSBC said.
Unity’s Q4 revenue of $457 million fell 25% year-over-year but beat estimates, driven by a 9% rise in its strategic Create segment. HSBC noted that Unity’s efforts to repair relationships with game publishers and expand into non-gaming sectors are showing results.
The company also launched a new AI-powered mobile ad model, Vector, which HSBC sees as a potential long-term challenger to AppLovin (NASDAQ:APP). However, the transition may cause short-term disruptions.
HSBC expects further revenue growth and a narrowing GAAP loss per share, citing Unity’s strong market position and M&A attractiveness.
Related Articles
Unity Software upgraded by HSBC after strong Q4, restructuring
Pope Francis's health status: not cured but not in danger of death
Western Digital removed from negative rating watch by Fitch, IDR affirmed at 'BB+'
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。