James Bales, an analyst from Morgan Stanley, maintained the Buy rating on Life360 Shs Chess Depository Interests Repr 3 Sh (LIFX – Research Report). The associated price target remains the same with A$28.60.
James Bales’s rating is based on Life360’s potential to lead the family connectivity market through a versatile platform that includes people, pets, and things. The company’s focus on user growth, engagement, and retention is seen as crucial for its success, with expectations of monetization following these metrics. The anticipated launch of a pet tracker and the potential for ad revenue to match the core business are significant growth opportunities that contribute to the Buy rating.
Additionally, Life360’s pricing strategy, including the removal of the silver tier in the US, suggests potential for increased revenue through price optimization in other markets. The company’s ability to adapt to new app store guidelines and promote direct sign-ups could further enhance its growth prospects. Financial forecasts and potential adjustments to guidance also support the positive outlook, with expectations for increased revenue and EBITDA in the coming quarters.
In another report released on May 5, Bell Potter also maintained a Buy rating on the stock with a A$28.15 price target.