The S&P/ASX All Technology Index (ASX: XTX) has shed 3% in the last month, but one ASX tech share is outperforming the index.
The Life360 Inc (ASX: 360) share price has lifted nearly 18% in the past month and closed on Friday trading at $5.13.
Let's take a look at the outlook for this San Francisco-based technology company.
Analyst tips huge upside for Life360 share price
This ASX tech share is known for the family safety app, Life360, used by 38 million people worldwide.
Analysts at Bell Potter have recently recommended investors buy Life360 share price and tipped it to hit $7.50. This is a 46% upside on the current share price.
Bell Potter believes Life360 can leverage its large user base to enter new markets and "disrupt the legacy incumbents.
These new markets could include insurance, item and pet tracking, home security, senior monitoring and roadside assistance.
The broker said:
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.
The analysts also noted Life360 should have a positive operating cash flow from the fourth quarter of 2023 and has enough cash to fund its operations in the meantime.
In August, Life360 reported 90% growth in subscription revenue in the first half of the calendar year 2022. More than 111,000 new subscribers signed up to Life360 in the June quarter alone.
Share price snapshot
The Life360 share price has descended 47% in the year to date, while it has lost nearly 46% in the past year.
In comparison, the All Tech index has fallen nearly 34% in the past year.
Life360 has a market capitalisation of about $955.5 million based on the current share price.
