Unity Software stock can ride a mobile gaming wave to huge upside, according to Bank of America. The firm upgraded Unity stock to buy from neutral in a Friday note, and raised its price target to $56 per share from $46. Based on its Thursday closing price of $35.71, that’s a potential gain of 56.8%. Unity stock has climbed roughly 25% from the start of the year. U YTD mountain Unity Software stock. The San Francisco-based company focuses on video game development through its in-house game engine Unity. Analyst Michael Funk says the company will find success in monetizing its mobile game creation tool, and will dually benefit from higher gaming advertising. “Improved monetization of U’s industry leading mobile game creation engine paired with a stabilizing mobile game advertising market create a compelling risk-reward profile, in our view,” Funk said. “With well-understood idiosyncratic execution and integration risks abating, we expect the stock to re-rate higher.” Funk also raised 2024 and 2025 full-year revenue forecasts by 4.4% and 9.9% thanks to “a more constructive view on U’s ad business.” — CNBC’s Michael Bloom contributed to this report.
