Unity (U) shares inched higher on Oct. 8 after a senior Raymond James analyst upgraded the video-game software firm to “Outperform,” citing its recently announced partnership with Alphabet's (GOOG) (GOOGL) Google.
In his research note, Andrew Marok assigned a bullish $54 price target that suggests U stock could rally another 20% from current levels through the remainder of 2026.
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The bullish call is particularly significant for Unity stock since it has already been in a huge uptrend since late March.
www.barchart.comWhy Raymond James Upgraded Unity Stock
Marok’s constructive stance on U shares is partly rooted in the company’s improving execution, particularly within its Grow business.
In his report, the analyst said growth in Vector and the resulting operating leverage have developed more quickly than the firm originally anticipated.
Vector is an important part of Unity’s advertising and monetization ecosystem, making stronger performance there particularly significant for its overall profitability outlook.
Raymond James now believes the improvement is more than just a temporary rebound, giving it greater confidence in Unity’s ability to execute across its business.
The firm based its price target on a multiple of about 9x on estimated 2027 revenue of $2.55 billion.
What Google Partnership Means for U Shares
The bigger catalyst behind Raymond James’s upgrade of Unity shares is the firm’s new partnership with Google.
U recently announced a strategic gaming platform that combines Google’s artificial intelligence (AI) capabilities and enormous consumer reach with its game-development and runtime technology.
Google and Unity are also developing Unity Spark — a new “creation experience” aimed at making game development more accessible than ever before.
Marok previously expressed concern that easier game creation through platforms such as Roblox (RBLX) and generative AI tools could weaken Unity’s creator funnel.
But he now believes the Google partnership helps address that risk by expanding Unity’s reach while strengthening the connection between its Create, Runtime, and Vector businesses.
How Wall Street Recommends Playing Unity
Other Wall Street analysts, however, believe much of the near-term upside is already baked into U stock at current levels.
While the consensus rating on Unity remains at “Strong Buy,” the mean price target of about $48 is roughly the same as its intraday peak on Oct. 8.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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