Life360 stock price target raised to $115 by Canaccord on strong growth

Published 01/10/2025, 12:32
Life360 stock price target raised to $115 by Canaccord on strong growth

Investing.com - Canaccord Genuity raised its price target on Life360 (NASDAQ:LIF) to $115.00 from $90.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, the company maintains impressive gross profit margins of 77% and operates with moderate debt levels.

Life360 shares climbed approximately 63% during the third quarter, according to Canaccord’s analysis. The company has demonstrated consistent acceleration in core subscription revenue growth throughout fiscal year 2024 and the first half of 2025, with revenue growing 30% year-over-year.

The firm noted that Life360’s international markets continue to benefit from the implementation of triple and dual-tier pricing models. On the advertising front, the company recently launched place ads, which deliver push notifications based on location-based behaviors.

In mid-August, Life360 appointed Lauren Antonoff, previously Chief Operating Officer, as CEO. Co-Founder and former CEO Chris Hulls transitioned to the role of Executive Chairman during this leadership change.

Life360 shares have gained 144% since May and nearly 158% year-to-date, with Canaccord stating that despite the stock’s premium valuation, it believes the premium is warranted given the company’s durable, robust growth and margin expansion. Trading near its 52-week high of $107.86, Life360 currently appears overvalued according to InvestingPro’s Fair Value analysis, which considers multiple valuation metrics and growth factors.

In other recent news, Life360 reported second-quarter 2025 revenue that exceeded consensus estimates by approximately $5.2 million, marking a 5% increase. The company’s EBITDA also surpassed expectations by about $6.9 million, or 52%, leading Citizens JMP to raise its price target from $62 to $95 while maintaining a Market Outperform rating. Similarly, Stifel increased its price target on Life360 from $87 to $92, citing strong performance across all segments and an upward revision of the company’s full-year guidance. Additionally, Life360 announced a leadership change, promoting Lauren Antonoff to Chief Executive Officer, while co-founder Chris Hulls transitioned to Executive Chairman. Meanwhile, Unity Software continues to receive positive attention, with JMP Securities reiterating its Market Outperform rating and a price target of $35. The firm highlighted the growing trend of web checkout solutions in the mobile ecosystem, which they believe will boost profitability for game developers and partners. These developments reflect the evolving strategies and leadership at both Life360 and Unity Software.

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