D.A. Davidson analyst Franco Granda kicked off Wall Street coverage of Unity Software Inc. (NYS:U) will a bullish rating, and a price target that was nearly double the initial public offering price. The videogame software company went public on Sept. 18, with the stock closing that day at $68.35, or 31.4% above its IPO price of $52; the stock closed Thursday at $83.20. Garda initiated Unity with a buy rating and $100 stock price target, saying he believes "this growth story has legs," as he expects a "meaningful revenue ramp" in the years ahead. " We like Unity for four reasons: exposure to the entire gaming market; significant growth opportunities in applications beyond gaming; a hybrid revenue model with plenty of upside; and potential beneficiary of the Epic Games vs. Apple feud (call option)," Granda wrote in a note to clients. He's the only analyst covering the stock that is followed by FactSet. Unity's stock fell 1.9% in premarket trading, after rising 21.7% over the past four days, while the S&P 500 (S&P:SPX) has lost 2.2% over the same time.
Sept. 25, 2020, 7:54 a.m. EDT