Unity price target raised to $50 from $45 at DA Davidson

DA Davidson analyst Franco Granda raised the firm’s price target on Unity to $50 from $45 and keeps a Buy rating on the shares after the company launched two generative AI products in closed beta, Unity Sentis and Unity Muse, as well as a dedicated AI marketplace inside its Unity Asset Store. The deployment of 1st party generative AI tools and integration of 3rd party solutions are the biggest steps towards Unity’s vision of democratizing real-time 3D rendering technologies to the masses, the analyst tells investors in a research note. The firm adds that it expects generative AI to drive increased game development activity and enhance Unity’s pricing power.