Life360 Inc (ASX: 360) shares were on form on Friday and raced higher.
The ASX 200 tech stock jumped 7% to $23.30 despite the market tumbling deep into the red.
The driver of this was the release of the location technology company's full year results.
This means that its shares are now up 92% since this time last year. But if you thought it was too late to invest, think again.
That's the view of analysts at Bell Potter and Goldman Sachs, which continue to tip its shares as a buy.
Commenting on Life360's results, Goldman Sachs said:
Life360's 4Q24 result exceeded guidance and consensus expectations at the Adj. Ebitda line, with MAU continuing to perform strongly in both US and International in a seasonally softer quarter. While FY25 Adj. Ebitda guidance came in-line with consensus, this includes a step-up in marketing and investment spend and is consistent with Life360's conservative approach to setting initial guidance (FY24 Adj. Ebitda +40% vs guidance provided 12m ago).
Long-term we expect continued growth to be supported by both US/International Subscriptions (International growth exceeding US), expansion of new channels (blending and optimizing Advertising and Data) and utilization of additional Hardware products to drive subscriptions (Pet Device late-2025 and Elderly Device).
In response, Goldman has retained its buy rating with an improved price target of $27.00. This implies potential upside of 16% for investors.
Over at Bell Potter, its analysts think the ASX 200 tech stock can rise even more.
According to a note out of Bell Potter this morning, its analysts were impressed with the company's performance and have upgraded their forecasts for the coming years. They said:
We have upgraded our revenue forecasts in 2025 and 2026 by 3% and 4%. We now forecast 2025 revenue of US$466m which is around the middle of the guidance range. We have also upgraded our adjusted EBITDA forecasts by 21% and 20% and now forecast 2025 adjusted EBITDA of US$70m which again is close to the middle of the guidance range. Notably we also now forecast 2025 statutory EBITDA of US$20m.
In light of this, the broker has retained its buy rating with an improved price target of $28.00. This implies potential upside of 20% for investors from current levels.
Bell Potter then concludes that a "key short term focus now is on whether Life360 gains entry into the S&P/ASX 100 or not." The next rebalance of the S&P/ASX indices is due to be announced imminently.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.