Unity initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Unity with an Overweight rating and $48 price target. The analyst says “waning metaverse hype” and questions around ironSource have overshadowed Unity’s “meaningful” mobile cross-sell opportunity, cost synergies, and industry total addressable market. This has created an attractive buying opportunity, the analyst tells investors in a research note. Wells sees a compelling opportunity for Unity to sell acquired ironSource monetization solutions to its developer installed base.