Citi analyst Siraj Ahmed maintained a Buy rating on Life360, Inc. yesterday and set a price target of $96.80.
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Siraj Ahmed’s rating is based on several positive indicators for Life360, Inc. The company is expected to have a strong third quarter, with significant growth in subscription revenues driven by back-to-school trends and strategic marketing efforts. The forecasted revenue is projected to be $120 million, marking a 30% year-over-year increase, and the EBITDA is anticipated to be $20 million, which is above consensus expectations.
Additionally, Life360 is seeing robust growth in its monthly active users (MAUs), particularly in the US market. The company is also poised to benefit from increased advertising revenue, thanks to a new partnership with Aura Inc. Furthermore, the introduction of the pet tracker is expected to enhance subscriber retention and attract new customers, despite some initial cost concerns. Overall, these factors contribute to a positive outlook for Life360, supporting Ahmed’s Buy rating.
In another report released on October 29, J.P. Morgan also initiated coverage with a Buy rating on the stock with a A$58.00 price target.