Unity Software (U) Sees Bullish Turn as Wells Fargo Shifts Rating Higher

Analyst Community Raises Expectations

The investment community is showing increasing confidence in Unity Software (NYSE:U). On December 5, 2025, Wells Fargo adjusted their position on the company, moving from Equal-Weight to Overweight status. This upgrade reflects growing optimism about the software developer’s near-term prospects and operational trajectory.

Despite this positive shift, current quotes on Unity present a cautiously optimistic picture. As of mid-November 2025, the consensus one-year price target sits at $43.64 per share, with projections ranging from $21.21 to $54.60. At the latest closing price of $44.15, this suggests a modest 1.16% downside from current levels—indicating the market may already be pricing in much of the anticipated upside.

Growth Projections Paint Strong Picture

The financial outlook for U shows considerable promise. Analysts project annual revenue will reach 3,482 million, representing a substantial 93.05% year-over-year increase. Non-GAAP earnings per share are forecasted at 1.34, reflecting improving profitability despite the company’s investment phase.

The options market reinforces this bullish perspective, with a put/call ratio of 0.67 signaling trader confidence in upward price movement. This reading suggests speculators are more focused on call purchases than protective puts.

Institutional Backing Strengthens

Fund sentiment around Unity has accelerated notably. A total of 905 funds and institutions currently maintain positions in U, up 98 holders (12.14%) from the previous quarter. The average portfolio allocation to the stock across all fund managers stands at 0.34%, marking a 12.64% increase in weighting. Institutional share count has grown by 0.11% to 408.971 million shares over the past three months.

Major stakeholders reveal confidence through their holdings:

Silver Lake Group, L.L.C. maintains the largest position with 34.735 million shares (8.12% ownership), unchanged from the prior period.

Sc Us follows with 31.932 million shares representing 7.46% of the company.

AGTHX - Growth Fund of America holds 21.169 million shares (4.95%), an increase from their previous 20.141 million share position. The fund raised its allocation weight by 5.78% during the quarter.

Capital International Investors owns 20.424 million shares (4.77%), despite reducing their holding slightly from 20.608 million previously. Interestingly, they increased their portfolio weight allocation by 53.70%, suggesting a strategic rebalancing rather than reduced conviction.

Wellington Management Group LLP completed the major holder list with 18.214 million shares (4.26%), up significantly from 11.476 million shares in their last filing—a 36.99% increase. However, they reduced their portfolio allocation weight by 64.16%, indicating a shift in overall positioning.

This pattern of increased share purchases combined with selective allocation adjustments suggests sophisticated investors are selectively adding to positions while managing broader portfolio risk.