Unity Software shares climbed as much as 9.1% on July 1st. The stock finished the session with a 6.7% gain.
A new analyst price-target increase triggered the rally. This update reinforces positive sentiment regarding the company's ongoing business turnaround.
Unity reported first-quarter revenue of $508 million. Management projects the company will reach GAAP profitability by the fourth quarter of 2026.
The company is currently exiting non-core advertising businesses to focus on higher-margin operations. An extended partnership with Meta Platforms is expected to improve growth quality and margins.