Unity Software Surpasses Analyst Target: What’s Next for Investors?
Recently, Unity Software Inc. (Symbol: U) shares traded at $22.80, exceeding the average 12-month analyst target price of $22.46. When a stock hits its target, analysts usually face a choice: either downgrade their rating, or adjust their target price upwards. How they respond often hinges on the company’s recent business developments, which can suggest whether further upward price adjustments are feasible.
In total, 14 analysts provide target prices for Unity Software Inc., contributing to the average figure of $22.46. However, there’s a range of opinions: one analyst estimates a price of $15.00, while another sets a much higher target of $30.00. The standard deviation among these predictions stands at $4.448, indicating varied sentiment among analysts.
The rationale behind considering the average target price is to capture a “wisdom of crowds” perspective, blending insights from multiple experts instead of focusing on a single opinion. With Unity now above the average target price, it’s a pivotal moment for investors. They must evaluate whether the $22.46 mark is a stepping stone towards an even higher target, or if the stock has become overvalued, prompting a reassessment of their holdings. Below is a table detailing analyst ratings for Unity Software Inc.:
| Recent U Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 6 | 6 | 6 | 6 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 10 | 10 | 9 | 9 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 2 |
| Average rating: | 2.53 | 2.53 | 2.5 | 2.5 |
The average rating, as shown in the last row of the table above, ranges from 1 (Strong Buy) to 5 (Strong Sell). This report utilized data from Zacks Investment Research via Quandl.com. Stay informed with the latest Zacks research report on Unity — offered free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
