James Bales, an analyst from Morgan Stanley, maintained the Buy rating on Life360 Shs Chess Depository Interests Repr 3 Sh. The associated price target remains the same with A$40.00.
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James Bales has given his Buy rating due to a combination of factors that highlight the company’s strong financial performance and future growth prospects. Life360’s recent financial results have exceeded market expectations, with revenue reaching US$115.4 million compared to the consensus of US$110.2 million, and an adjusted EBITDA of US$20.3 million surpassing the expected US$13.4 million. These figures suggest a robust operational performance, which is further supported by a significant cash balance increase to US$434.2 million, attributed to convertible notes.
Moreover, the company’s future outlook remains promising, with an expected revenue range of US$462-482 million for FY25, an increase from the prior estimate. The appointment of Lauren Antonoff as CEO and the strategic shift from hardware to subscription revenue indicate a positive trajectory for the company. Additionally, international monthly active user growth of 34% and a 33% increase in Triple Tier markets demonstrate strong market expansion potential. These elements collectively underpin James Bales’s optimistic Buy rating for Life360.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a A$46.20 price target.