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Buy, hold, sell: Life360, South32, Wesfarmers shares

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S&P/ASX 200 Index (ASX: XJO) shares edged 2.77% higher and produced total returns, including dividends, of 7% in FY26.    

Here, we review new notes from the experts regarding three ASX 200 shares. 

Let’s take a look.

Life360 Inc (ASX: 360)

The Life360 share price fell 17% to $26.70 on 30 June amid a broader technology sector downturn in FY26.

Chris Savage from Bell Potter has a buy rating on this ASX 200 tech share for FY27.

In a new note last week, Savage said:  

Life360 is our key pick amongst the large tech stocks we cover based on quality, valuation and potential catalysts.

We note the stock looks reasonable value on a 2027 EV/EBITDA multiple of c.23x versus the FY27 EV/EBITDA of Technology One (which has a September year end) of c.26x.

The broker raised its 12-month price target from $33 to $35. 

Savage noted that Life360 will report its 2Q FY26 results on 11 August, and said this may be a catalyst for the share price for three key reasons: 

1. We expect MAU growth to rebound to 4.3m – consistent with 2Q2025 – if not higher (VA consensus is 4.6m) which importantly will imply an exit run-rate of close to 5m given the Android issues which persisted into April and even May; 2. We expect paying circle growth to be strong again at c.155k which is notably above VA consensus of c.135k and even see upside risk to our forecast closer to the 1Q2026 result of 202k; and 3. If paying circle growth is >155k then we see potential for a further upgrade to 2026 revenue and EBITDA guidance as paying circle growth is obviously the key driver of subscription revenue.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price rose 6.67% in FY26 to finish at $90.40 on 30 June. 

James Bills from Shaw and Partners has a hold rating on the market’s largest ASX 200 consumer discretionary share.

Bills explained why on The Bull this week:  

Wesfarmers continues to demonstrate strength through its diversified portfolio of businesses, particularly with solid contributions from retail giants Bunnings and Kmart.

The group’s ability to generate consistent earnings and reinvest capital effectively supports its premium valuation.

Recent updates indicate stable trading conditions, although cost pressures and a softer consumer backdrop may limit near term growth.

While the company remains a high quality industrial with strong management, its current valuation suggests more of a balanced risk-reward profile, which supports a hold stance.

South32 Ltd (ASX: S32)

The South32 share price ripped 34.02% to close out FY26 at $3.90. 

Morgans downgraded its rating on this ASX 200 mining share from accumulate to hold last week.

The broker also cut its 12-month target price from $5 to $4.50.

Morgans said: 

S32 has agreed to sell its entire ali business for total consideration of US$5.6bn (US$4.1bn upfront), and transfer of US$1.2bn closure/rehab liabilities.

Our view on S32’s aluminium sale is genuinely mixed. It leaves S32 a simpler and, in important respects, a better business, but also a smaller and less valuable one.

We reduce our valuation on S32’s ali assets to in line with the agreed Alcoa deal… As a result we update our rating to HOLD (from Accumulate).

 

 

The post Buy, hold, sell: Life360, South32, Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Wesfarmers. 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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