Unity selloff brings buying opportunity, says Piper Sandler

Piper Sandler analyst Brent Bracelin lowered the firm’s price target on Unity to $33 from $38 and keeps an Overweight rating on the shares. Eroding gaming and advertising demand coupled with the completed ironSource merger has elevated investor controversy on Unity and pressured the enterprise valuation, Bracelin tells investors in a research note. While execution risk could remain elevated for the next two quarters, patient investors willing to look out a few years "could be rewarded by earnings and multiple expansion," says the analyst. He sees a buying opportunity in the stock on the ‘bad news."