BTIG has reaffirmed its Buy recommendation on Unity Software (NYSE: U) and maintained a $60.00 price target, pointing to what the firm describes as improving top-line momentum and the prospects for revenue expansion tied to new offerings. That price target implies roughly a 106% upside from Unity's current quote of $29.10, a level that reflects a sharp pullback of 32.33% in the last week.
Signs of early product traction
BTIG's research note called out Unity Vector, one of Unity's marketing solutions, as delivering an early lift in return on ad spend (ROAS) - a gain in the range of 15-20% during initial deployment. The firm also cautioned that scaling Vector introduced challenges later in the rollout. Still, BTIG's industry expert reported that Unity spending showed strength in the fourth quarter, registering year-over-year growth of about 20% and quarter-over-quarter gains near 10% as the platform attracted attention and new testers while some initial issues were resolved.
Looking further ahead, BTIG's specialist expects spending on Unity to grow by roughly 18% year over year in 2026. The firm characterized 2026 as an improved outlook compared with prior quarters but not necessarily a breakout year for the company's performance.
New product potential
BTIG also emphasized Unity's D28 product, suggesting it could draw spending from clients with higher lifetime value in traditional midcore categories. The research note argued that D28 might enable Unity to access a segment of developers whose spending would be additive to gross platform spend, potentially broadening Unity's addressable market within existing developer cohorts.
Investors will have an opportunity to gauge progress on these initiatives when Unity reports quarterly results on February 11. The company is presently trading slightly below its Fair Value estimate, according to InvestingPro data, and carries a market capitalization of $12.45 billion in the assessment available to subscribers of the platform's Pro Research Report.
Mixed reception from other brokerages
Analyst coverage of Unity has been varied in recent sessions. Wells Fargo increased its price target to $54, citing higher fourth-quarter revenue expectations tied to stronger performance at Unity Ad Network. Freedom Capital Markets launched coverage with a Buy rating and a $52 target. BTIG itself had previously moved from a Neutral stance to Buy as part of the trajectory that led to the recent reiteration of the $60 target.
At the same time, BofA Securities cut its price target to $18 and reiterated an Underperform rating, pointing to valuation concerns and noting Unity's relatively high trading multiple versus peers. Competitive developments also weighed on sentiment: Google’s announcement of Project Genie prompted investor concern about possible effects on Unity's Create business. Despite that backdrop, William Blair's Bhavan Suri maintained an Outperform rating on the shares.
What this means for markets
The divergence among broker views highlights the uncertainty around Unity's path to consistent, scaled monetization of its advertising and product suites. The key variables investors will be tracking include whether marketing solutions like Unity Vector can sustain ROAS improvements when scaled, whether D28 can attract higher-LTV customers in midcore segments, and how competitive moves affect Create-related revenue.
With a major earnings event approaching, market participants will be watching management's commentary for clarity on adoption, product scaling and revenue mix shifts that could influence the stock's near-term trajectory.