It is easy to assume a falling share price means a deteriorating business.

With Life360 Inc (ASX: 360) shares, that assumption would be wrong.

Life360 shares are down 29% in the calendar year to date. Shares have been caught up in the broader rotation away from high-multiple ASX technology names.

Yet Christopher Watt from Bell Potter Securities has a buy rating on this ASX 200 tech share, and his reasoning is worth understanding before writing this one off as just another falling growth stock.

Why Life360 shares have lagged the business

Life360 provides a mobile family safety app used to track location, monitor driving behaviour, and provide emergency assistance for families.

The business itself has not been struggling.

Today, Life360 trades on a price-to-earnings multiple of just 28x. This multiple looks low for a company with this kind of subscriber growth trajectory.

This gap between a falling share price and a growing underlying business is the kind of situation income and growth investors are trained to look past the headlines for.

What is actually driving subscriber and revenue growth

Life360 has been steadily expanding its monetisation strategy beyond its original subscription model.

The company has diversified into advertising revenue and data partnerships, reducing its reliance on subscription growth alone to drive the top line.

This diversification gives Life360 multiple, less correlated revenue streams. This is a structural advantage over single-product software companies that are entirely dependent on subscriber growth to grow revenue.

Life360’s advertising revenue grew 329% year-on-year to US$19.7 million in Q1 2026 following the Nativo acquisition. Encouragingly, core subscription revenue grew a separate 36% over the same period.

A broader monthly active user base, paired with a growing advertising revenue stream layered on top, has kept underlying fundamentals improving even as the share price has fallen.

Why Bell Potter sees a buy for Life360 shares

Bell Potter’s buy rating reflects a view that the market is mispricing Life360 relative to its growth trajectory and improving monetisation.

When a stock has been swept up in sector-wide selling pressure rather than company-specific bad news, the eventual repricing, once sentiment turns, can be sharp.

This is the bet implicit in Bell Potter’s rating.

The risks worth understanding

Life360 operates in a competitive market.

Major technology platforms, including Apple and Google, have built or could build competing location-sharing features directly into their own ecosystems.

Life360’s ability to keep growing depends on continuing to out-innovate larger competitors with greater resources.

Furthermore, ASX technology shares as a group remain sensitive to interest rate expectations, meaning Life360 shares could continue to move with broader sector sentiment regardless of how the underlying business performs in the near term.

Foolish takeaway

Life360 shares are down 29% in 2026, but the underlying business tells a different story from the share price chart.

A reasonable earnings multiple, a diversifying revenue base, and a buy rating from an analyst willing to look past the recent selling all point in the same direction.

For investors who believe the sector-wide tech sell-off has been indiscriminate rather than company-specific, Life360 is a name worth understanding in depth before dismissing it on price action alone.

The post Why this analyst rates Life360 shares a buy right now appeared first on The Motley Fool Australia.

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• Down but not out: 3 ASX tech shares ripe for a rebound

Motley Fool contributor Mark Verhoeven 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. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If income were the goal, I would want ASX dividend shares connected to assets people keep using.

That is why infrastructure can be a useful place to look. The best assets are difficult to replace, provide essential services, and can keep generating cash flow through different economic conditions.

Two ASX dividend shares I would consider buying are Transurban Group (ASX: TCL) and APA Group (ASX: APA).

Transurban Group shares

I think Transurban is one of the most interesting income shares on the ASX.

The company owns and operates toll roads in major cities, including Sydney, Melbourne, Brisbane, Greater Washington, and Montreal. These are not ordinary roads. They are important transport corridors in places where congestion, population growth, and time savings can make road access valuable.

That gives Transurban a rare type of asset base. A good toll road can remain useful for decades. It can be expensive to build, politically hard to approve, and difficult to duplicate once a city has grown around it. That scarcity is part of the investment appeal.

For income investors, Transurban offers exposure to cash flows linked to road usage. Traffic volumes can move with economic activity, work patterns, and cost-of-living pressures, but major urban roads can still sit at the centre of how people and goods move around.

The company is also expected to pay a distribution of 69 cents per security in FY26. That gives it a 4.5% forward dividend yield, which I think is attractive for investors looking for passive income.

Of course, Transurban is capital intensive. Debt, interest rates, regulation, traffic assumptions, and major project costs all need watching. But I think the company’s portfolio of toll road assets gives it a strong foundation for long-term income.

APA Group shares

APA is another ASX dividend share I would be happy to consider for income.

The company owns and operates energy infrastructure across Australia. Its assets include gas pipelines, processing and storage facilities, electricity transmission infrastructure, power generation, batteries, and renewable energy assets.

I think the appeal is the role these assets play in the energy system. Energy demand does not disappear just because the economy slows. Households, businesses, hospitals, factories, data centres, and transport networks all need reliable energy. APA’s infrastructure helps move and support that energy supply.

The company also sits in an interesting position as Australia’s energy system changes. Gas, firming power, storage, renewable generation, and transmission could all have a role to play as the country tries to balance reliability, affordability, and lower emissions.

For income investors, APA’s distributions are obviously a key attraction. The business has guided to a 58 cents per security distribution in FY26, which provides a solid 5.5% yield at recent prices.

Infrastructure owners can face pressure from debt costs, regulation, project spending, and changing energy policy. Still, I think APA’s long-lived assets and importance to Australia’s energy system make it a useful passive income candidate.

Foolish takeaway

A strong income portfolio should have cash flow with structure behind it.

That is what I like about Transurban and APA. One helps people and goods move through major cities. The other helps energy move through the economy.

There will be periods when interest rates, regulation, or market sentiment put pressure on infrastructure shares. That comes with the territory. But if the aim is to build passive income from assets with real-world importance, I think these two ASX dividend shares are worth a close look.

The post 2 ASX dividend shares I’d buy for passive income that can last appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans has been busy looking at several ASX shares this week.

Is it bullish, bearish, or lukewarm on these shares? Let’s find out:

Amcor PLC (ASX: AMC)

Morgans is positive on this packaging giant but not quite enough for a buy rating.

It has put an accumulate rating and $65.40 price target on the ASX share. Based on its current share price of $58.58, this implies potential upside of approximately 12% for investors. It commented:

Following its merger with Berry Global in April 2025, AMC identified a non-core portfolio of ~US$2.5bn in revenue. These lower-growth or lower-margin businesses where AMC lacks scale or leadership positions are expected to be divested over time via cash sales or joint ventures/partnerships.

While there is a range of scenarios that can play out, using conservative assumptions, we estimate the combined non-core portfolio could be worth ~US$1.8bn. To date, AMC has reached agreements to sell six businesses for a combined value of ~US$500m. AMC plans to use proceeds from non-core asset sales to reduce leverage, which stood at 3.8x at the end of 3Q26. While management expects leverage to end FY26 at 3.4-3.5x, the stretched balance sheet remains a key investor concern. Our analysis indicates a strong negative relationship (correlation coefficient -0.76) between AMC’s leverage and its 1-year forward PE multiple. We therefore expect a reduction in leverage to support an improvement in AMC’s PE multiple over time.

Beach Energy Ltd (ASX: BPT)

This ASX energy share has been given a sell rating by Morgans this week with a reduced price target of 81 cents. This compares to its current share price of 86 cents.

The broker is bearish due to its belief that the company could fall short of expectations. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance. While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Reliance Worldwide Corporation Ltd (ASX: RWC)

Although this plumbing parts company’s shares trade on undemanding multiples, it isn’t quite enough for anything more than a hold rating at present with a price target of $3.60. This is a touch lower than its current share price of $3.72.

The broker was positive on its decision to close its Australian brass operations. It said:

RWC has announced plans to close its Australian brass casting, forging and machining operations, along with several smaller sites, as part of its ongoing global footprint rationalisation program. We think the decision makes sense given RWC’s reduced reliance on Australian-sourced brass in recent years. Annualised net savings are expected to be ~US$9m by the end of FY27, with benefits in the Americas more than offsetting an adverse impact on APAC earnings. One-off costs of US$100-110m (including ~US$5m cash) are expected to be incurred in FY26.

We make no changes to underlying assumptions, with changes to earnings forecasts reflecting the one-off costs in FY26 and net benefits expected across FY27 and FY28. RWC’s valuation remains undemanding (12.8x FY27F PE) and recent developments related to the Middle East conflict should be positive for the global macroeconomic outlook. However, US housing demand remains subdued with 30-year fixed mortgage rates still around 6.5%. The timing of a recovery in housing activity remains uncertain and we therefore maintain our HOLD rating.

The post 1 ASX share to accumulate, one to hold, and one to sell appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $1000 per week in passive income?
• Here are the top 10 ASX 200 shares today
• Why Aurelia Metals, Beach Energy, IAG, and Rio Tinto shares are falling today
• 5 things to watch on the ASX 200 on Wednesday
• Buy, hold, sell: How does Morgans rate these ASX shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.