Why the Life360 (ASX:360) share price just hit a new record high

This tech star is hitting new heights today…

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The Life360 Inc (ASX: 360) share price has started the week on a positive note.

In afternoon trade, the app maker’s shares rose 5% to a record high of $7.37.

This latest gain means Life360’s are now up 89% since the start of the year.

Why is the Life360 share price is hitting a record high?

The catalyst for the rise in the Life360 share price on Monday has been a broker note out of Morgan Stanley.

According to the note, the broker has retained its overweight rating and $8.60 price target on the company’s shares.

Based on the latest Life360 share price, this implies potential upside of 17% even after today’s rise to a record high.

What did the broker say?

Morgan Stanley believes that Life360 is well-placed to accelerate its growth. This is thanks to the high level of COVID-19 vaccinations, re-openings, and the return to normal schooling. This is expected to support demand for subscriptions for its family safety app, which provides users with solutions such as location sharing, driving safety, and messaging.

In addition to this, the broker believes its recent highly successful marketing campaign on TikTok will increase brand engagement and downloads. Morgan Stanley suspects that this success will allow the company to spend more on customer acquisition while still meeting its guidance for a loss no greater than US$15 million in FY 2021.

Is anyone else positive on Life360?

Another broker that is bullish on the Life360 share price is Credit Suisse. Its analysts currently have an outperform rating and $8.30 price target on its shares.

Credit Suisse is becoming increasingly positive on the company’s opportunity to monetise its massive user base of ~28 million users.

Should you invest $1,000 in Life360 right now?

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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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