Why the Life360 (ASX:360) share price could be heading higher

This tech share could be adding to its 2021 gains in the coming months…

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It has been a fantastic year for the Life360 (ASX: 360) share price.

So far in 2021, the family-focused app maker’s shares have risen an incredible 139%.

Can the Life360 share price keep climbing higher?

The Life360 share price may be smashing the market in 2021, but one leading broker doesn’t believe it has peaked just yet.

According to recent note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company’s shares to $10.75.

With the Life360 share price currently fetching $9.30, this means there’s still potential upside of 15.5% over the next 12 months.

What did the broker say?

Bell Potter was pleased with Life360’s performance during the first half of FY 2021. The broker notes that the company’s revenue of US$48 million and EBITDA loss of US$4.8 million were in line with its forecasts.

And while the broker acknowledges that Life360 intends to invest more heavily and will record greater than previously forecast losses, this isn’t enough to impact its bullish view.

Bell Potter continues to be a big fan of the company due to its attractive valuation compared to peers, its large and resilient subscriber base, and its potential to enter and disrupt other markets.

In respect to the latter, the broker commented: “Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.”

All in all, while the Life360 share price has rocketed higher this year, the broker doesn’t believe the gains are over just yet.

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.

*Returns as of January 13th 2022

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. owns shares of 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 Bruce Jackson.

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