Life360 stock holds steady at Stifel despite strong Q3 results

Investing.com - Life360 (NASDAQ:LIF) received a reiterated Hold rating and $92.00 price target from Stifel despite reporting better-than-expected third-quarter results for both revenue and EBITDA. According to InvestingPro data, the company has achieved impressive 33.86% revenue growth over the last twelve months, with a strong gross profit margin of 77.71%.

The company raised its fiscal year 2025 guidance expectations across all segments and EBITDA following the strong quarterly performance, according to Stifel’s research note. InvestingPro data indicates that analysts expect Life360 to be profitable this year, with an EPS forecast of $0.32 for FY2025.

Life360 also announced the acquisition of Nativo, an ad tech company expected to accelerate advertising and margin growth. Nativo’s advertising run-rate is approximately twice that of Life360’s existing business, and the addition of publisher and demand relationships should support monetization of Life360’s data-rich customer base.

The company’s underlying user and subscriber growth remains strong, with paying circles hitting another all-time high sequential payer gain. The recent launch of new pet trackers is expected to support increased member retention and acquisition separate from existing core use cases.

Stifel expressed satisfaction with the progress of Life360’s core business and belief in the long-term story, but maintained its Hold rating, noting that the current valuation appears to incorporate expectations for near-term fundamental upside. InvestingPro analysis suggests the stock is currently overvalued, trading at a P/E ratio of 279.2 and an EV/EBITDA multiple of 425.66. InvestingPro has identified 14 additional investment tips for Life360, available in the comprehensive Pro Research Report covering this $7.4 billion market cap company.

In other recent news, Life360 reported quarterly earnings that exceeded expectations, with revenue and EBITDA coming in 4% and 38% above consensus estimates, respectively. This strong performance led the company to raise its 2025 guidance for subscription and other revenue. Canaccord Genuity responded by raising its price target for Life360 to $115, citing consistent acceleration in core subscription revenue growth. Meanwhile, UBS lowered its price target for Life360 to $110, maintaining a Buy rating but expressing concerns over a slowdown in U.S. monthly active user growth. Stifel downgraded Life360 from Buy to Hold, pointing out concerns about the timing of the company’s growth initiatives. Citizens reiterated a Market Outperform rating with a $95 price target, acknowledging the company’s strong earnings and acquisition activities. In related news, Unity Software received a reiterated Market Outperform rating from JMP Securities, with a price target of $35, as the firm noted the potential profitability improvements from web checkout solutions in the mobile ecosystem. These developments highlight a dynamic period for Life360 and Unity Software, reflecting varied analyst perspectives and strategic considerations.

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