Unity assumed with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Unity (U) with a Neutral rating with a price target of $38, up from $32.50 as part of a broader research note previewing Q3 results in Digital Advertising space. The firm is making a series of operating estimate changes to highlight a mix of sustained momentum around performance-oriented budgets throughout Q3, with heightened performance in July/August, continued industry headwinds from a weaker brand advertising environment with easing revenue headwinds emerging in September that might act an improved tailwind, and experimental budgets that remain more volatile, with smaller platforms still seeing more stalled or downside volatility to budgets in the September timeframe, the analyst tells investors in a research note.