A Buy Rating with a Raised Price Target – TipRanks Financial Blog

Chris Gawler, an analyst from Goldman Sachs, reiterated the Buy rating on Life360 Shs Chess Depository Interests Repr 3 Sh (LIFX – Research Report). The associated price target is A$14.20.

Chris Gawler’s rating is based on a robust growth projection for Life360, primarily driven by the company’s solid subscription growth prospects. This optimism stems from the company’s ability to cycle through significant price increases effectively, which is anticipated to contribute to its revenue expansion. Additionally, Gawler perceives the FY24 EBITDA guidance provided by Life360 to be on the conservative side, suggesting there is room for significant earnings growth in the fiscal years 2024 and 2025. Furthermore, the potential for Life360 to incorporate advertising into its revenue stream presents an opportunity for substantial medium-term financial improvement. This could mark an important turning point in the company’s earnings profile, offering what Gawler describes as a ‘free’ option, due to the current undervaluation of Life360’s subscription business—even after accounting for recent movements in share price.

The rationale behind the Buy rating also includes Gawler’s belief that Life360 is at the cusp of a re-rating, which when paired with the aforementioned subscription growth and advertising potential, underscores the compelling nature of the valuation upside. He reinforces his positive stance by adjusting the 12-month price target upwards by 35% to A$14.20 per share. This new target is justified by rolling forward the valuation to FY25E and aligning the company’s rate with its industry peers. Gawler’s assessment indicates a strong confidence in Life360’s strategic positioning and its ability to capitalize on growth opportunities, ultimately leading to a recommendation for investors to purchase the stock.

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Based on the recent corporate insider activity of 27 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 LIFX in relation to earlier this year.

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Life360 Shs Chess Depository Interests Repr 3 Sh (LIFX) Company Description:

Life360 Inc is a United States based software development company. It is engaged in providing an application that runs on mobile device and allow users to view family members on a map, communicate with them, and receive alerts.

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