Life360 continues rally after posting record quarterly revenue
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The news: Shares in Life360 surged for a second day as analysts raise their target price on the stock after the company reported record quarterly revenue and a CEO transition on Tuesday.
The numbers: At 12:11pm AEST, shares in Life360 had lifted 6% to $43.22.
Life360 reported 36% revenue growth in the June quarter year on year to hit USD115.4 million ($176 million) and posted net income of USD7 million, up compared to a USD10 million loss year on year. It also increased guidance, lifting 3% at the low end.
UBS analysts lifted their target price from USD71 to USD85 and retained their ‘buy’ rating.
Morgan Stanley analysts similarly raised their target price from $40 to $51 and retained their ‘overweight’ rating while Bell Potter analysts lifted their target price from $37.50 to $47.50 and retained their ‘buy’ rating.
The context: In a research note, the UBS analysts said they “like the move of COO Lauren Antonoff to CEO” amid better than expected second quarter performance and more confidence “the US user funnel” in the second half of the year.
Morgan Stanley analysts raised their full-year EBITDA estimates by 10%-14% as they see “a meaningful probability that the 2Q upgrade will not be the last for FY25”.
Life360 is also considering moving manufacturing of its Tile trackers out of China to avoid US President Donald Trump’s threatened tariffs, with Malaysia the most likely destination.
The sources: UBS research, Bell Potter research, Morgan Stanley research
