This year has been rough on the Life360 Inc (ASX: 360) share price but one top broker believes there are better days to come.
At the time of writing, the Life360 share price is $3.37. That’s 4% higher than its previous close but 65% lower than it was at the start of 2022.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.6% today. It has slipped nearly 5% this year. Additionally, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has also struggled this year, sliding 32%.
So, what has brokers bullish on the Life360 share price? Let’s take a look.
Why the Life360 share price could rise by 120%
The Life360 share price could have a 122.5% upside, according to Bell Potter.
The broker likes the company’s cash position and future profit prospects, The Motley Fool Australia’s James Mickleboro recently reported.
For those not familiar with the company, it’s the developer of the Life360 app. The app is designed to allow families to track their loved ones to ensure safety.
Life360 isn’t yet turning a profit. However, it did bring in US$52.7 million of revenue in the March quarter. It also boasted US$98.2 million of cash reserves as of the end of the quarter.
On top of that, the app was attracting 38.3 million active users at the end of March. That’s a 36% increase at the same point in 2021.
The company is expecting to break even in the final quarter of next year and be cash flow positive for the whole of 2024.
In the near term, it’s expecting its earnings before interest, tax, depreciation, and amortisation (EBITDA) to come to a loss of US$32 million to US$38 million in 2022.
All that considered, Bell Potter is very hopeful for the future of the stock. It has slapped a $7.50 price target and a buy rating on Life360 shares.
The post Top broker says unloved Life360 share price has 120% upside appeared first on The Motley Fool Australia.
Should you invest $1,000 in Life360 right now?
Before you consider Life360, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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