Unity Software (NYSE:U) is gaining on Friday, following a bullish analyst upgrade tied to its partnership with Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.
The Nasdaq is up 0.55% while the S&P 500 has gained 0.30%.
• Unity Software stock is showing upward bias. Where are U shares going?
Momentum from Upgrades, Price Targets
Friday’s gains follow a number of analysts’ stock ratings and price target changes. On Thursday, Jefferies maintained a Buy rating while raising its price target to $54 and Raymond James analyst Andrew Marok upgraded the stock from Market Perform to Outperform with a $54 price target, citing Unity Software’s partnership with Google. Freedom Capital Markets’ Nick McKay maintained a Buy rating and a $48 price target.
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On Friday, BTIG maintained its Buy rating and raised its price target to $53.
Grow Business and AI Partnership
Marok noted that his outlook improved due to stronger-than-expected performance in Unity Software’s Grow advertising business. He stated that the Google partnership addresses concerns regarding developer retention as platforms like Roblox Corp (NYSE:RBLX) expand.
Marok said the Google partnership addresses those concerns by combining Unity’s development and runtime technology with Google’s artificial intelligence capabilities and consumer reach.
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Marok added that with greater confidence across Unity Software’s Create, Runtime and Vector businesses, he sees a more favorable risk-reward outlook for the stock.
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Technical Analysis
Unity is trading about 8% above its 20-day SMA ($43.08) and about 9% above its 50-day SMA ($42.77), which says the near-term trend is still pointed up and pullbacks have been getting bought. Zooming out, it’s also roughly 30% above the 100-day SMA ($35.87) and about 46% above the 200-day SMA ($31.93), reinforcing that the longer-term trend has flipped higher versus earlier in the year.
The Golden Cross in August (50-day SMA moving above the 200-day SMA) supports the idea that dips may continue to attract longer-term trend followers, even if the stock chops around near resistance. With the current price still below the 52-week high of $52.15, bulls often view that gap as “room to run” if the market stays supportive.
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- Key Resistance: $48.50 — Nearby pivot area where rallies can stall before the stock makes a run at the 52-week high zone.
- Key Support: $40 — Round-number level that sits below the 20-day/50-day area and can act as a line in the sand if momentum cools.
U Stock Price Activity: Unity Software shares were trading up 5.15% at $46.54 at the time of publication on Friday, according to Benzinga Pro data.
Photo: Shutterstock.
