Unity Software Inc. (U) surged 5.02% in pre-market trading on Thursday, driven by Piper Sandler's upgrade of the stock to "overweight" from "neutral" and a significant raise in its price target to $59 from $43.
The brokerage cited accelerating growth in Unity's Vector ads business, which grew approximately 15% quarter-over-quarter in Q2 2025 and 17% in Q3 2025. Under CEO Matt Bromberg, Unity has rolled out product upgrades, including its primary mobile ad network, "Unity Vector Ads," which has been a key driver of the company's recent performance.
Piper Sandler's bullish outlook reflects confidence in Unity's ability to sustain growth, with 16 of 29 brokerages now rating the stock as "strong buy" or "buy." The stock has already gained 118% year-to-date as of its last close.
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