Unity price target lowered to $31 from $40 at Needham

Needham analyst Bernie McTernan lowered the firm’s price target on Unity to $31 from $40 after its wider than expected Q4 earnings loss and the strategic reset announced by the management but keeps a Buy rating on the shares. The company has been transitioning from “growth at any cost” to a greater focus on profitability given changing investor expectations, and the firm now sees a path for the recent restructuring to be the final step in this process, with Q4 results and guidance providing investors with a new firm floor to grow from in their strategic portfolio businesses, the analyst tells investors in a research note.