Broker tips Life360 (ASX:360) share price to keep rising after hitting record high

This top broker is a big fan of Life360…

The Life360 Inc (ASX: 360) share price is pushing higher again on Thursday.

Earlier today, the family-orientated app maker's shares were up almost 4% to a record high of $6.93.

When the Life360 share price hit that level, it was up a remarkable 78% since the start of the year.

A happy family playing video games smiles and laughs together

Image source: Getty Images

Why is the Life360 share price charging higher today?

There have been a couple of catalysts for the rise in the Life360 share price today.

One is an announcement earlier this week which revealed that Life360 has created a Family Advisory Council that will bring together well-known celebrities and influencers to help shape the company's product and marketing strategy.

Management also revealed that it expects its annualised monthly revenue to land towards the upper end of its guidance of US$110 million to US$120 million in 2021. This follows a successful marketing campaign on TikTok.

What else?

Also giving the Life360 share price a boost today was a broker note out of Bell Potter.

According to the note, the broker has retained its buy rating and lifted its price target to $7.75. This implies further upside of almost 12% for its shares over the next 12 months.

It commented: "Life360 provided a market update and the key take-out in our view was a soft upgrade in the guidance for annualised monthly revenue (AMR) in December 2021 from in the range of US$110-120m to now "at the higher end" of this range."

"The key drivers of the upgrade were "early success of user experience improvements and a recent surge in downloads driven by virality on social media, primarily TikTok". The company also said a further update will be provided at the release of the 1H2021 result in August when "the extent, impact, and duration of the new wave of registrations will be clearer" suggesting there may be some further upside to the guidance."

"The other key take-out from the update was a US$2.1m investment in the company by a group led by Bryant Stibel which is an investment company founded by Kobe Bryant and Jeff Stibel," it concluded.

All in all, the LIfe360 share price may have hit a record high today, but the gains may not be over just yet.

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 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 Bruce Jackson.

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