UPDATE: Goldman Sachs Starts Unity Software (U) at Buy

Goldman Sachs analyst Chris Merwin initiates coverage on Unity Software (NYSE: U) with a Buy rating and a price target of $126.00.

The analyst comments "We believe Unity and its engine for creating real-time content is driving a structural shift in the way that video games are created. The barriers to entry for game development - specifically a proprietary and expensive engine - are starting to come down as Unity makes its engine available to all types of creators at relatively low cost, and with the flexibility to develop across platforms. Also, Unity is still in the very early days of extending its platform into non-gaming verticals, adding more option value for long-term growth. We believe the recent news around IDFA headwinds and group multiple contraction provide an attractive entry point for U shares. Specifically, Unity is trading at ~26x our CY22 sales forecast relative to ~29% growth (roughly in line with peers at ~26x average relative to ~31% growth), but with a long runway for growth and a more limited competitive set relative to the peer group, in our view."

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 $105.70 yesterday.

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