Shares of the ASX-listed Life360, Inc. (AU:360) surged after analyst James Bales from Morgan Stanley reaffirmed his Buy rating. Morgan Stanley is optimistic about Life360 and listed it as a top investment idea, ahead of its 2024 results, scheduled on February 27, 2025. The analyst also believes the market undervalues Life360’s large subscriber base and growth potential. Bales has set a price target of AU$25, predicting an upside of 15% in the share price.
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Life360 is a U.S.-based technology company that offers location-based services globally. Its flagship product, the Life360 family social networking app, was launched in 2008.
Morgan Stanley Backs Life360
Morgan Stanley’s Buy rating is supported by several factors, including Life360’s strong user base of around 80 million highly engaged users. The company continues to experience notable growth in its users despite its already large size. Hales further highlighted that Life360’s strong download performance in the fourth quarter indicates a high conversion rate for monthly users. Meanwhile, the company’s average monthly revenue has surpassed expectations, boosting confidence in its revenue forecasts.
Additionally, Life360’s move into new services, like pet and elder care, could attract more users further strengthens the case for a Buy rating. Other positive factors for Life360 include the potential price hikes, new hardware integration, and growing adoption by international users.
In terms of guidance, the company expects consolidated revenue of $368-$374 million and core subscription revenue growth of over 25% year-on-year. In comparison, the company reported $305 million in revenue for 2023.
Is Life360 a Good Stock to Buy?
According to TipRanks’ rating consensus, 360 stock has received a Strong Buy rating based on four Buy and one Hold recommendations. The Life360 share price target is AU$24.74, which is 14% above the current price level.
