Street Calls of the Week
Investing.com - Stifel downgraded Life360 (NASDAQ:LIF) from Buy to Hold while maintaining its price target of $92.00. The stock, currently trading at $91.36, shows strong momentum with a 102% return over the past year, though InvestingPro analysis suggests it may be overvalued at current levels.
The research firm cited concerns about market expectations regarding the timing of Life360’s upcoming growth initiatives, suggesting investor anticipation has outpaced realistic implementation timelines. Despite these concerns, the company maintains impressive gross margins of 77% and robust revenue growth of 30% year-over-year.
Stifel specifically mentioned advertising, pet tracking, and elder care as growth initiatives that may take longer to materialize than current market expectations suggest.
Despite the downgrade, Stifel noted positive fundamentals for Life360, with third-party data showing healthy monthly active user growth both in the United States and international markets.
The firm maintained its unchanged price target of $92.00 and indicated it would consider a more positive stance on the stock should its valuation soften.
In other recent news, Life360 has seen a series of positive developments following its second-quarter 2025 results. The company reported revenue that exceeded consensus estimates by approximately $5.2 million, a 5% increase, and an EBITDA that surpassed expectations by about $6.9 million, marking a 52% improvement. These results have led to several analysts adjusting their price targets for the company. Canaccord Genuity raised its price target to $115, maintaining a Buy rating, while Citizens JMP increased its target to $95, also maintaining a Market Outperform rating. Stifel similarly raised its target to $92, citing strong second-quarter performance and improved full-year guidance. Additionally, Citizens JMP noted that Apple accounts for 54% of Life360’s processing revenue. Meanwhile, JMP Securities reiterated its Market Outperform rating on Unity Software, emphasizing the growing trend of web checkout solutions in the mobile ecosystem. These recent developments highlight the ongoing positive momentum for Life360 and Unity Software in their respective markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.