The Life360 Inc (ASX: 360) share price was well and truly on form in 2023.
During the 12 months, the location technology company's shares rose a massive 55%.
This is six times greater than the return of the ASX 200 index over the same period.
They say lightning can't strike twice, but could it with Life360 shares? Could they deliver another 55% return for investors from current levels? Let's find out.
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Could the Life360 share price rise another 55%?
There are plenty of analysts that believe the company's shares can climb materially this year.
For example, the team at Goldman Sachs currently has a buy rating and $10.50 price target on its shares. This implies potential upside of approximately 42% for investors over the next 12 months.
Goldman highlights that the rapidly growing company has a "compelling valuation" and is experiencing a number of tailwinds. It said:
Life360's valuation is compelling at 0.18x growth-adjusted EV/GP vs 0.41x/0.49x MP1/SDR, and 11x/19x FY25E EV/EBITDA pre/post stock comp (adj. for R&D capitalisation). The set-up heading into the 4Q result is akin to early 2023, with reasonable consensus earnings expectations that could be upgraded through FY24E on better-than-expected operating leverage (noting we assume +15% FY24E OpEx growth). With positive tailwinds from International expansion and improving payer conversion, we stay Buy.
Over at Bell Potter, its analysts have a buy rating and $11,00 price target on the company's shares. This suggests potential upside of approximately 50% for the Life360 share price from current levels.
Bell Potter sees a huge growth runway ahead for the company thanks to its Life360 app. It said:
The app is used globally by close to 60 million people and, of these, there are around 5 million paying subscribers. There is, therefore, a very long runway to go in terms of converting users to paying customers and even after a recent hefty price rise the company is adding around a few hundred thousand paying subscribers a quarter.
Finally, the team at Morgan Stanley is the biggest bull and believes that another 55% return is possible this year. It has an overweight rating and $11.50 price target on Life360's shares.
It is tipping a full year result that will beat consensus expectations later this month, setting the stage for a major re-rating of its share price.
