Unity Software Disappoints In Q1, 4 Analysts Provide Input On What To Expect In ‘Back Half’ Of 2024
Shares of Unity Software Inc (NYSE:U) tanked in early trading on Friday, after the company reported mixed results for the first quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways.
- Needham analyst Bernie McTernan maintained a Buy rating and price target of $31.
- Wedbush analyst Michael Pachter reiterated an Outperform rating and price target of $33.50.
- Benchmark analyst Mike Hickey reaffirmed a Sell rating and price target of $16.
- JMP Securities analyst Andrew Boone maintained a Market Perform rating on the stock.
Check out other analyst stock ratings.
Needham: Unity Software delivered a “large” beat in the first quarter. Its strategic revenue growth is likely to accelerate through the back half of 2024, McTernan said in a note. While adjusted EBITDA came significantly higher than expectations, “cloud consumption expenditure is weighing on the expected sequential growth in adj. EBITDA in 2Q,” he added.
The company expects to “gain leverage and increase efficiency of these cloud costs,” which could result in …
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