If you're on the lookout for new investment ideas, then listed below are two shares to consider from very different sides of the market.
Here's why experts think these two ASX 200 shares are buys:
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Life360 Inc (ASX: 360)
The first ASX 200 share to look at is technology company Life360. Through its eponymous Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones.
A whopping 33.8 million monthly active users are using its app, which is underpinning stellar recurring revenue growth. The company also has significant cross- and up-selling opportunities to monetise its user base further in the future.
Unfortunately, as Life360 is still operating at a loss, its shares have been hammered this year during the tech selloff. However, the team at Bell Potter believe this is a real buying opportunity for investors, especially given its belief that the company has enough cash to see it through to profitability.
The broker is also expecting the core business to report very strong growth during the first quarter.
It said: "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."
Its analysts currently have a buy rating and $10.00 price target on Life360's shares.
South32 Ltd (ASX: S32)
Another ASX 200 share to consider is mining giant South32.
It is a diversified mining and metals company producing bauxite, alumina, aluminium, coal, copper, manganese, nickel, silver, lead, and zinc.
With the prices of many of these commodities trading at high prices currently, South32 has been tipped to generate significant profits and cash flow. The latter has Goldman Sachs forecasting fully franked dividend yields in or around 10% over the next three years.
Goldman said: "We are Buy rated on S32.AX (on CL) with strong FCF (17% base case for FY23), exposure to base metals (75% EBITDA; aluminium & alumina c. 50% of FY23 EBITDA, copper c.10 %, zinc/nickel c. 20%), and with 7%/3% Cu Eq production growth in FY22/FY23 driven by; ~30% or c. 280ktpa increase in aluminium production from the Alumar restart & c. 17% increase in Mozal stake, creep in nickel from Cerro Matoso and lead/zinc/silver from Cannington, and the Sierra Gorda copper acquisition."
The broker has a conviction buy rating and a $5.80 price target on its shares.
