Unity initiated with a Market Perform at JMP Securities

JMP Securities initiated coverage of Unity with a Market Perform rating and no price target. Unity is the leading real-time 3D creation platform with 1.5M active developers and leading share of game creation across mobile, PC, and virtual reality games, the analyst tells investors in a research note. The firm believes the company has “significant runway” to increase subscription prices, gain share of gaming ad budgets, and expand margins. However, with the shares up 43% since the announcement of Apple Vision Pro and 64% year-to-date, JMP believes the hype around augmented and virtual reality is overstated near term and looks for expectations and valuation to come down before recommending shares.