Unity price target lowered to $45 from $55 at BofA

BofA lowered the firm’s price target on Unity to $45 from $55 and keeps a Buy rating on the shares. Q4 results “mark a clearing event for estimates and strategy,” contends the analyst, who notes that the company’s “largely completed” strategic review resulted in the termination of Weta, de-emphasis of Professional Services and exiting the Luna business. Margin improvement will ramp throughout the year as headcount reductions benefit Q2 to a greater degree than Q1 and the revenue growth reset from the strategic review and projected operational efficiencies “create a strong line of sight to the company’s rule of 40 target by year end 2024,” the analyst added.