Unity’s recent selloff ‘particularly attractive buying opportunity,’ says BofA

BofA contends that Unity’s (U) stock is “more attractive today than on September 11,” which was the day before announcing the initial iteration of its pricing and plan change. On September 11, Unity closed at $38, which the analyst notes is 19% above the current price, with “lower projected revenue, a less clear path to monetizing its Create platform and negative investor sentiment regarding mobile ad market positioning” relative to Applovin (APP), says the analyst. Unity and investors are “better off today and we view the recent selloff as a particularly attractive buying opportunity” after Unity recently announced several refinements to address concerns following developer feedback regarding its recently introduced Runtime install-based fee pricing structure, added the analyst. BofA has a Buy rating and $56 price target on Unity shares.