Unity Software Inc. (NYSE: U) saw its stock surge 6.64% in pre-market trading on Wednesday, following a significant target price upgrade from a major Wall Street firm.

Jefferies, a prominent investment bank and financial services company, has raised its target price for Unity Software from $29 to $35. This represents a substantial increase of over 20% from their previous valuation, signaling growing confidence in the company's future prospects.

While specific reasons for the target price hike were not provided in the brief announcement, it's likely that Jefferies analysts see potential in Unity's core business of providing tools for video game development and its expansion into other sectors such as automotive, film, and architecture. The increased target price could also reflect positive expectations for Unity's financial performance or strategic initiatives in the near future. Investors appear to be reacting positively to this vote of confidence from Jefferies, as reflected in the pre-market stock movement.