To put it mildly, Unity Software (NYSE: U) has not been a well-performing stock this year. It has lost nearly 60% of its value while the benchmark S&P 500 index has gained in excess of 16%.

Yet the stock still has believers who feel it can head skyward before long. One of them recently cut his price target on the shares, but still thinks better days are ahead for the company.

A somewhat contrarian view

Analyst Jason Bazinet from Citigroup was the man wielding the scissors. In mid-August he used them to reduce his Unity price target to $24 per share from his previous $31. Yet the new level still implies heavy upside, at it is 45% higher than the stock's most recent closing price as I write this. Bazinet continues to rate the shares a buy.

Although Bazinet acknowledged in his latest research note that Unity was facing significant challenges, he said the company's new management team should be able to face these and right the ship in 2025.

One fine opportunity for the company, which operates a video game development platform, is its upcoming Unity 6 offering, he said. Bazinet wrote that "we suspect the roll-out of Unity 6 (and the associated pricing changes) may pave the way for Unity's equity to perform better than it has."

Turnaround sorely needed

Unity still hasn't recovered from a major pricing debacle of its own making last year, and a restructuring attempt didn't go far in improving its operations. Meanwhile, its second-quarter earnings report featured a huge bottom-line miss, and reduced guidance for both revenue and profitability.

With no clear indication that it's about to turn suddenly into an efficient and profitable enterprise, Unity currently feels like it might be a falling-knife situation best avoided. I struggle to accept Bazinet's optimistic take on the stock.

Before you buy stock in Unity Software, consider this: