Wedbush Securities reduced the price target for Unity Software to $37. The previous target was $55. Wedbush maintained its Outperform rating on the stock.
The adjustment follows the emergence of CloudX, an AI-infused startup. CloudX acts as a potential disruptor in the mobile advertising space, impacting Unity and its peers.
The analyst action occurs amid significant weakness for Unity’s stock. The broader software market remains unsettled by fears of AI disruption.
Despite the pressure, Wedbush analysts stated they believe the structural moats for Unity and AppLovin remain "intact." The firm suggests the company’s long-term position is secure despite recent competitive pressure.