Life360 Inc (ASX: 360) shares swung wildly on Tuesday.
The family safety technology company's shares were up as much as 15% before ending the day 10% lower.
Is this a buying opportunity for investors? Let's see what Bell Potter is saying about the tech stock.
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What is the broker saying?
Despite what the Life360 share price performance might indicate, Bell Potter notes that the company delivered a result ahead of expectations in FY 2025. It said:
2025 revenue of US$489m was slightly above our forecast of US$488m and VA consensus of US$486m and was top end of the US$486-489m guidance range. Adjusted EBITDA of $93m, however, was a beat versus our forecast of US$90m and VA consensus of US$88m and was also above the US$87-92m guidance range. Cash at year end was US$495m which was ahead of our forecast of US$476m.
The broker was also pleased with Life360's guidance for FY 2026, which was in line with both the broker's and consensus estimates. It adds:
Life360 provided guidance for global MAU growth of 20% (already provided), consolidated revenue of US$640-680m (vs BPe US$658m and VA consensus US$656m) and adjusted EBITDA of US$128-138m (vs BPe US$130m and VA consensus US$132m). The company also said "due to timing of investments in initiatives to support our growth, we anticipate adjusted EBITDA to be lightly weighted in the first half of 2026, and heavily weighted in the second half of 2026."
In light of this, Bell Potter has upgraded its forecasts for 2026 and 2027.
Should you buy Life360 shares?
According to the note, the broker has retained its buy rating on Life360's shares with a slightly trimmed price target of $40.00 (from $41.50).
Based on its current share price of $20.36, this implies potential upside of almost 100% for investors over the next 12 months.
Bell Potter couldn't explain Tuesday's share price weakness but appears to see it as an opportunity for investors to load up on the company's shares. It said:
We are at a loss to explain the share price reaction today other than the flagged greater skew in earnings this year to H2. But Life360 has a very good history of achieving and often exceeding its guidance so while we expect potentially only modest adjusted EBITDA growth in 1H2026, we do expect a return to very strong growth in 2H2026. We note for comparison purposes that Technology One has also flagged a similar greater earnings skew in FY26.
