Morgan Stanley Raises Unity Software (U) Price Target to $55
Morgan Stanley has reaffirmed its Overweight rating on Unity Software Inc., raising its price target to $55, a 35.97% upside from the current price.
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Morgan Stanley raised its price target on Unity Software Inc. ($U) to $55 from $50 on October 13, 2026, and rates the stock "Overweight".
Since the rating, $U is down 13.4% to date (from the $46.63 close on Oct 13, 2026).
U
Unity Software Inc.
Key Points
- On October 13, 2026, Morgan Stanley reiterated its Overweight rating on Unity Software Inc. (NYSE: U) and raised its price target from $50 to $55.
- Morgan Stanley's $55 price target implies 35.97% upside from Unity Software Inc.'s ($U) current $40.45 share price.
- As of October 16, 2026, Unity shares were recently trading around $40.45, which is about 19.8% below the analyst's mean price target.
- Unity Software has shown a year-over-year revenue growth of 23.9%, although it currently has a negative net margin of 29.0%.
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Morgan Stanley has reiterated its Overweight rating on Unity Software Inc. (NYSE: U) and raised its price target from $50 to $55 on October 13, 2026. This move comes as Unity continues to demonstrate strong revenue growth, although it still faces challenges with profitability.
Other Institutional Activity in Unity Software
Several other institutional investors have maintained their positions in Unity Software. Blackrock Inc. grew its holdings by 4,445,818 shares, ending with 23,380,305 shares worth about $944.3 million. Vanguard Portfolio Management LLC added 1,879,200 shares, bringing its total to 20,466,738 shares valued at approximately $826.7 million. Vanguard Capital Management LLC also increased its stake by 1,648,997 shares, totaling 17,205,571 shares worth around $694.9 million. Silver Lake Group, LLC and Sc Us (ttgp), Ltd. kept their holdings steady at 34,735,404 and 31,824,924 shares, respectively.
Unity Software Inc. Stock Down 2.3%
Unity shares were recently trading around $40.45 as of October 16, 2026. This price is about 6.9% below the 50-day moving average of $43.47, but 26.7% above the 200-day moving average of $31.93. The stock is currently 22.4% below its 52-week high of $52.15 but remains significantly above its low of $16.78.
$U price target
Unity Software Inc. daily closes and this analyst's $55 target. Not advice.
Recent Earnings
Unity Software reported trailing twelve-month revenue of approximately $2.03 billion, reflecting a year-over-year revenue growth of 23.9%. The company has a negative net margin of 29.0% and a return on equity of -17.4%. Its next earnings report is expected on November 5, 2026.
Insider Buying and Selling at Unity Software Inc.
Recent insider selling includes significant transactions by top executives. On August 25, 2026, CEO Matthew S Bromberg sold 16,383 shares valued at approximately $742,278, while COO Alexander Blum sold 22,559 shares for about $1,021,095 on August 27 and an additional 43,556 shares for around $1,895,194 on August 28. These transactions were not part of planned sales.
Analysts Set New Price Targets
On October 13, 2026, Morgan Stanley maintained its Overweight rating on Unity Software with a new price target of $55. This follows a series of ratings from other firms, including Jefferies and BTIG, which also maintained their Buy ratings with targets of $54 and $53, respectively. The consensus among analysts suggests a strong buy recommendation with a mean price target of $50.41.
About Unity Software
Unity Software Inc. operates a platform that helps developers create and grow games and interactive experiences across various devices, including mobile phones, PCs, and consoles. As it continues to innovate in the software space, the recent rating by Morgan Stanley reflects confidence in its growth potential despite current profitability challenges.
Bottom Line
Investors will want to watch Unity Software's upcoming earnings report on November 5, 2026, for further insights into its financial health and growth trajectory. Morgan Stanley's updated price target and continued Overweight rating indicate a positive outlook for the company amid its ongoing challenges.
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Source: Morgan Stanley's rating change on $U (Oct 13, 2026). Written by software, not financial advice. How we make alerts