Unity price target lowered to $33.50 from $50 at Wedbush

Wedbush analyst Michael Pachter lowered the firm’s price target on Unity to $33.50 from $50 and keeps an Outperform rating on the shares. After suspending guidance and moving forward with a “reset” that resulted in a 30% reduction in its workforce, Unity dropped the “other shoe” with its Q4 results, the firm says. Wedbush believes that interim CEO Jim Whitehurst has fully cleared the decks of all excess baggage, positioning Unity to easily exceed expectations over the remainder of the year. However, the firm has little evidence to back up its thesis, and believes Unity will remain a “show me” story for at least one more quarter.