Unity Software Inc. U gained an analyst upgrade on Friday on the belief the company’s new game-developer fees will achieve the “monetization” of an “industry leading game creation engine.” On Friday, B of A analyst Michael Funk upgraded Unity to a buy from a previous neutral, and hiked his price target to $56 from $46, because his analysis of the company’s new fee structure was “unlocking” the company’s “engine for growth.” On Wednesday, Unity met with blowback after it announced it would charge more established game developers every time their game was downloaded. One analyst considered it a “PR disaster,” but saw the upside in the new fees, while shares fell 5.5% Wednesday, and another 3% on Thursday. Funk said he believes mobile ad spending has stabilized and that “known risks and execution issues are more than priced into the stock.” Unity shares were up 0.4% at last check, and are on track for a 5% decline on the week.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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