In a report released yesterday, Maria Ripps from Canaccord Genuity maintained a Buy rating on Life360, Inc. (LIF – Research Report), with a price target of $58.00.
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Maria Ripps has given her Buy rating due to a combination of factors including Life360’s strong first-quarter performance, which exceeded expectations in both revenue and profitability. The company experienced a notable 37% year-over-year growth in core subscription revenue, attributed to improved customer retention, effective marketing strategies, and the successful implementation of multi-tier pricing plans. Although hardware sales were weaker than anticipated, the increase in US Premium subscribers linking Tile devices to their accounts indicates positive momentum.
Furthermore, Life360 is making strides in its advertising efforts, with the introduction of a native ad format and a strategic partnership with AI safety company Aura, which is expected to enhance advertising revenue. The company’s FY25 guidance reflects a stable outlook, with an increase in subscription revenue projections offsetting a decrease in hardware revenue expectations. Despite the premium valuation, the consistent strategic progress, user growth, and expanding monetization support the Buy recommendation.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $48.00 price target.
Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LIF in relation to earlier this year.