It was an eventful day of trade for the Life360 Inc (ASX: 360) share price.
Early on in the day, the location technology company's shares were up as much as 14% to $5.97. However, by the end of the session, the Life360 share price was trading broadly flat at $5.23.
This is despite the ASX 200 index rising 1.05% and the S&P/ASX All Technology Index storming 3.3% higher for the day.
In light of the Life360 share price missing out on the rally today, it is still down 45% since the start of the year.
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Is the weakness in the Life360 share price a buying opportunity?
The team at Bell Potter believes the Life360 share price is great value at the current level.
In fact, based on a note released this morning, the broker sees almost 100% upside for investors over the next 12 months.
According to the note, Bell Potter has retained its buy rating and $10.00 price target on the company's shares.
What did the broker say?
Although Bell Potter expects some impact on sales of its Tile products due to privacy/stalker concerns around Apple AirTags, it is still forecasting overall strong growth in FY 2022.
It commented: "We expect the strong growth in the core business of Life360 (i.e. ex Jiobit and Tile) shown in Q3 and Q4 of last year to continue into Q1 this year. Specifically, we expect the year-on-year growth in AMR (annualised monthly revenue) – excluding Jiobit and Tile – to be c.50% in March 2022 which is similar to the reported y-o-y growth of 48% in September and 51% in December 2021. We also forecast similarly strong y-o-y growth in Q1 revenue – excluding Jiobit and Tile – of 48% to US$34.0m."
"Conversely, however, we expect the Q1 revenues of both Jiobit and Tile to be relatively flat y-o-y due mainly to continued supply constraints and some potential temporary easing of demand for Tile products given the privacy concerns around Apple AirTags. In our view, however, relatively flat revenues in these businesses are not a bad result given the current constraints and/or headwinds," it added.
