The Life360 Inc (ASX: 360) share price is bouncing back from yesterday's selloff.
In afternoon trade, the location-based services provider's shares are up 17% to $5.50.
Though, despite today's rebound, the Life360 share price remains down 21% since the start of the week.
Why is the Life360 share price surging higher today?
Investors have been bidding the Life360 share price higher on Friday for a couple of reasons.
One of those is investors flooding back into the tech sector following a very strong night of trade on Wall Street's Nasdaq index.
Another catalyst for the rise in the Life360 share price appears to have been the positive response to the company's results from brokers.
What are brokers saying?
This morning the teams at Bell Potter and Credit Suisse maintained their equivalent of buys ratings on the company's shares.
Credit Suisse has held firm with its outperform rating and $16.50 price target, whereas Bell Potter has retained its buy rating and trimmed its price target to $10.00.
Both brokers continue to forecast strong growth over the coming years and appear to see this share price weakness as a buying opportunity.
Commenting on the result, Bell Potter said: "Life360 had already pre released most of the key metrics in the 2021 result which were all very strong. These included subscription revenue growth of 48%, total revenue growth of 40%, paying circles growth of 38% and, by our estimation, average revenue per paying circle (ARPPC) growth of 20%. The company ended the year with a cash c.US$94m after adjusting for the Tile acquisition and the only debt is convertible notes of c.US$8m. There was no final dividend but we did not expect any."
And while the broker has made some small reduction to its forecasts, it still expects very strong growth over the coming years.
"There is negligible change in our 2022 and 2023 revenue forecasts. We have modestly reduced our Tile revenue forecasts but this has been offset by increases in our subscription revenue forecasts. We have, however, modestly increased our forecast underlying EBITDA losses from US$30.1m to US$34.0m in 2022 and from US$11.3m to US$12.9m in 2023," it added.
Bell Potter is forecasting a 142% increase in revenue to US$273.3 million in FY 2022 and then a further 22% lift in revenue to US$333.7 million in FY 2023.
All in all, it believes this makes the Life360 share price great value at the current level.