Unity (U.S.)'s two core businesses are soaring, Goldman Sachs Group, Inc. has raised its target price to $42, maintaining a "neutral" rating.

Goldman Sachs Group, Inc. has released its latest research report, raising the target price of Unity Software (U.US) from $38.00 to $42.00, while maintaining a "neutral" rating. As of the close of trading on Wednesday, Unity's stock price was $42.36, corresponding to a market value of $17.83 billion. This adjustment follows the release of the company's third quarter 2025 financial report - during this quarter, Unity's total revenue saw solid growth, mainly driven by strong performance in the Create and Grow business segments. Additionally, management also holds an optimistic outlook for the fourth quarter. Goldman Sachs Group, Inc. analysis points out that Unity's Create business is benefiting from product price increases and positive industry factors, while the Grow business is gaining growth momentum through the continuous expansion of Vector AI. It is worth noting that Unity's stock price has surged by 67.07% in the past six months, showing impressive performance. Despite recent targeted investments to expand the Vector business, Unity's incremental profit margin remains high. Management has reiterated its strategic commitment to long-term balanced growth and profitability. Analysts predict that Unity will achieve earnings per share of $0.86 for the fiscal year, officially entering a profitable cycle. However, Goldman Sachs Group, Inc. also raises valuation concerns - although the company has emerged from previous turbulence and is expected to revive revenue growth, it remains to be seen whether the current stock price fully reflects expectations of future growth acceleration. It is worth noting that Unity's better-than-expected performance in the third quarter has led to several institutions adjusting their ratings. The financial report shows that the company's quarterly revenue reached $471 million, surpassing the market forecast of $452.76 million; earnings per share of $0.20 also significantly exceeded the original estimate of -$0.23. Based on this performance, Citizens has raised Unity's target price to $45 and maintains an "outperform" rating, while Morgan Stanley has further increased the target price from $44 to $48, maintaining a "hold" rating. Morgan Stanley specifically emphasizes that this is the first time in nearly four years that Unity's two business segments have achieved positive internal growth, with actual revenue and EBITDA surpassing their expectations by 5% and 16% respectively, highlighting the company's financial performance and analysts' positive outlook.