Unity Gets a New Buy Rating. It’s Changing How Videogames Are Getting Made.

Text size

Unity Software

stock had a strong showing Monday, after Goldman Sachs initiated research coverage and said Unity’s videogame developer tools are making it easier and cheaper for companies to make games.

Shares of Unity (ticker: U) rose 3.5% to $109.36 in Monday trading.

In a note to clients, Goldman Sachs analyst Christopher Merwin initiated coverage with a $126 target price and a Buy rating.

“We believe Unity and its engine for creating real-time content is driving a structural shift in the way that videogames are created,” Merwin wrote. “The barriers to entry for game…