Our 12-month target price for Unity is $6, derived using a discounted cash flow (DCF) analysis. We use a weighted average cost of capital (WACC) of 15% and a -50% terminal growth rate post 2032.

We rate UBX High Risk based on the usual volatile nature of small-cap biotech companies. The following risks could disprove our Buy thesis and prevent the shares from reaching our target price: 1) early Ph2 proof-of-concept data in DME are not replicated in future studies, and 2) UBX1325 causes an unforeseen safety signal in the clinic.