Apple (NASDAQ:AAPL) unveiled its augmented reality headset – Vision Pro. While the unveiling of the Vision Pro has created ripples of excitement throughout the market, it is the shareholders of Unity Software (NYSE:U) who have emerged as the immediate beneficiaries. Following Apple’s announcement of its AR/VR headset, Unity stock closed 17.2% higher on June 5.
It’s worth highlighting that Apple is working with Unity to launch its headset. Unity provides a platform for creating and operating interactive, real-time 3D content. As Apple is building a new universe of apps and games for its Vision Pro headset, the company highlighted that developers could leverage Unity’s robust tools to create new apps and games. Moreover, these apps will have access to all the benefits of VisionOS.
U Stock – Promising Signs
Including yesterday’s gains, Unity stock is up about 27% year-to-date.
The company is focusing on driving productivity and streamlining its operations to deliver profitable growth in the long term. During the Q1 conference call, Unity Software announced that it was reducing 8% of its workforce as part of its restructuring plan to cushion the bottom line.
Unity started 2023 on a solid note, with its revenue growing by over 56% year-over-year in Q1. Furthermore, the company expects its top line to grow faster than the markets in which it competes for the rest of the year. Also, the company is progressing well on the profitability front.
Is Unity Stock a Buy or Sell?
As Unity focuses on delivering profitable growth, the Top Wall Street analysts are bullish about Unity stock, giving Unity stock a Strong buy consensus rating. It’s worth highlighting that TipRanks identifies the top analysts per sector, per timeframe, and against different benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations. Following the ratings, TipRanks’ algorithms calculate the statistical significance of each rating, the analysts’ overall success rate, and the average return.
Among the four top analysts giving ratings on Unity stock, three recommend a Buy, and one suggests a Hold. Further, the 12-month price target of all top analysts is $48, implying 32.16% upside potential from current levels.
