Unity Software Inc. (NYSE: U) shares are soaring 11.55% in pre-market trading on Wednesday, following a significant price target upgrade from Jefferies. The investment bank raised its target price for Unity from $29 to $35, setting a new Street-high and signaling increased confidence in the game development platform provider's growth prospects.

Jefferies' new price target represents an impressive 18% upside from Unity's previous closing price of $29.69. The brokerage maintained its "buy" rating on the stock and raised its revenue forecasts for fiscal years 2025 and 2026 by 2% and 3%, respectively. Analysts at Jefferies cited incrementally positive comments about Unity's ad targeting model, Vector, in their Q2 mobile game Ad Tech survey as a key factor in their bullish outlook.

This latest surge adds to Unity's already strong performance in 2025, with the stock up approximately 32% year-to-date before today's jump. The company, known for its widely-used game development platform, has been expanding its reach beyond gaming into sectors such as automotive, architecture, and film. As Unity continues to innovate and diversify its revenue streams, investors appear increasingly optimistic about its future prospects. However, it's worth noting that of the 29 brokerages covering Unity Software, opinion remains split with 14 "buy" ratings, 14 "hold" ratings, and one "sell" rating.