BofA Securities Assumes Unity Software (U) at Underperform, PT $15

BofA Securities analyst Omar Desspuky assumes coverage on Unity Software (NYSE: U) with a Underperform rating and a price target of $15.00.

The analyst comments "We reinstate at Underperform & $15 PO. We are unconvinced that (1) Unity’s game engine (i.e. Create segment) can create further shareholder value via its seat-based subscription sales, (2) that U’s substantial game engine investment can monetize via ads. 70% of mobile games run on Unity Engine, but only ~10% of developers pay. We think the low odds of financial success & longevity limits most casual game developers’ willingness to pay for large teams of users. Unity’s attempt to tie revenues to content consumption was ultimately abandoned after developer backlash; by contrast, almost every other game engine we researched monetizes via content sales, or is open source."

For an analyst ratings summary and ratings history on Unity Software click here. For more ratings news on Unity Software click here.

Shares of Unity Software closed at $24.15 yesterday.

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