Life360 shares lift as FY result and outlook impress analysts
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The news: Life360 shares gained at market open after Bell Potter, Goldman Sachs and Morningstar all made upgrades to the app maker.
The numbers: Life360 shares were up 1.6% to $23.68 at 10:40am AEDT, having jumped 7.2% after the release of the company's full-year earnings on Friday.
Analysts made the following upgrades:
- Bell Potter: Price target up 1% to $28
- Goldman Sachs: Price target up 8% to $27
- Morningstar: Fair value up 4% to $18.70
The context: Bell Potter and Goldman Sachs, both reiterated 'buy' ratings on Life360 and noted that the company's full-year result and 2025 guidance were better than expected.
Bell Potter analyst Chris Savage flagged that the "key short term focus" for the stock is whether it gains entry into the S&P/ASX 100 index or not.
Morningstar analyst Roy Van Keulen said the company had a strong year, which saw revenue grow 22% and international monthly active users rise by nearly 50%. However he believes that Life360 shares are overvalued, with the market over-extrapolating in-app advertising revenue.
What they said: "Most apps can't improve targeting over time to deliver additional value for advertisers," Van Keulen said. "...We can't see the company developing use cases to make advertisements more targeted."
The sources: Bell Potter research, Goldman Sachs research, Morningstar research
