Stifel maintains Buy on Life360 stock, keeps $48 target

On Tuesday, Stifel analysts reiterated a Buy rating on Life360 (NASDAQ:LIF) stock, maintaining the price target at $48.00. The firm’s assessment followed Life360’s first quarter performance, which surpassed expectations primarily due to an increase in Other Revenue, outperforming analyst predictions by 6%. This boost was attributed to significant growth in advertising revenue, which soared to $4.6 million compared to just $100,000 in the first quarter of 2024. According to InvestingPro data, Life360’s stock has delivered an impressive 83% return over the past year, currently trading near its 52-week high. The company’s market capitalization stands at $3.5 billion, with analysts’ price targets ranging from $48 to $60.

Life360’s outlook for 2025 remains largely unchanged, although there has been a minor adjustment in the revenue projections for Subscription and Hardware sectors. The analysts noted that the impact of tariffs on hardware could be balanced by an acceleration in subscription revenue. InvestingPro analysis reveals the company’s strong financial health with a "GREAT" overall score and impressive gross profit margins of 76%. Furthermore, Life360 is on track to launch a pet tracking feature in the fourth quarter of 2025, with a strategic focus on international markets to minimize tariff impacts. This move is expected to contribute to the company’s international expansion efforts, building on its robust revenue growth of 26% in the last twelve months.

In addition to the quarterly performance, Life360 announced a $25 million investment in Aura, a digital security company. Revenue from this investment is anticipated to materialize in the second half of 2025. Stifel’s analysts expressed confidence in Life360’s growth narrative, highlighting the potential of upcoming product enhancements such as pet and elder care services, as well as app improvements. They also pointed to the integration of the Tile app and the introduction of native advertising formats as key factors in creating additional customer value.

The report concluded by slightly raising the firm’s estimates for Life360, while reaffirming the $48 price target and Buy rating. This endorsement reflects Stifel’s optimism about the company’s strategic initiatives and potential for continued revenue growth. InvestingPro subscribers can access 16 additional investment tips and a comprehensive Pro Research Report for Life360, offering deeper insights into the company’s valuation, financial health, and growth prospects.

In other recent news, Life360 reported a strong first-quarter performance, surpassing expectations with a rise in paid subscribers and an increased forecast for subscription revenue. This growth led Loop Capital Markets to raise their price target for Life360 from $52.00 to $58.00, maintaining a Buy rating on the stock. JMP Securities also reiterated a Market Outperform rating with a $55.00 price target, citing the company’s unique freemium business model and robust user growth both domestically and internationally. The strategic introduction of Triple Tier subscriptions in international markets has been noted as a sign of the company’s healthy core business.

Additionally, Life360’s new initiatives, such as the integration of pet tracking features and the upcoming launch of elder care services, are seen as potential drivers for future growth. The company also appointed Vari Bindra as Chief Information Security Officer to enhance its commitment to security and privacy. Bindra brings a wealth of experience from previous roles at Amazon (NASDAQ:AMZN) and Intuit (NASDAQ:INTU), aiming to bolster Life360’s digital safety measures. These developments reflect Life360’s strategic efforts to expand its market presence and strengthen its service offerings.

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