With the recent market weakness, I think it's a good time to start looking more closely at ASX 200 shares that have pulled back but still have strong long-term growth potential.
Broker forecasts can be useful here. While they're not always right, they do highlight where professional analysts see value based on earnings expectations and company outlooks.
Right now, two ASX 200 shares stand out to me because analysts are pointing to potential upside of 60% or more.
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Life360 Inc. (ASX: 360)
Life360 has had a tough run recently, with its share price sitting at $18.98.
That weakness appears to have caught the attention of Bell Potter, which has a buy recommendation and a $37.75 price target on the stock. That is almost double the current share price.
A key part of the broker's view comes down to the company's history of outperforming expectations. It said:
We note, however, the company has a good track record of beating guidance and, for instance, upgraded the 2025 guidance at the Q2 and Q3 results last year, then upgraded again in January and beat at adjusted EBITDA in March.
That kind of consistency is something I think investors often underestimate, especially with growth companies. Even when near-term guidance looks conservative, businesses that regularly exceed expectations can still deliver strong returns over time.
Bell Potter also points out that Life360 has guided to relatively modest growth in the near term, which could leave room for a small beat, particularly on margins. It added:
We therefore believe that, after setting expectations relatively low for Q1, there is some chance of a small beat, perhaps more in the adjusted EBITDA margin rather than MAU growth.
I think that dynamic is important. Expectations matter just as much as performance when it comes to share prices. If expectations are set low, it doesn't take much for sentiment to improve.
For me, Life360 still looks like a high-quality growth business with a large global opportunity. The recent pullback doesn't remove the risks, but it could be creating a more attractive entry point for long-term investors with this ASX 200 share.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a very different type of business, but I think it's just as interesting right now.
The fashion jewellery retailer's shares are trading at $22.80, and Morgans has a buy recommendation with a $36.80 price target. That suggests upside of more than 60% from current levels.
The broker was encouraged by the company's recent first-half result, noting:
LOV reported a strong underlying 1H26 result with EBIT up 20.4%, ~6% ahead of our expectations, driven by store network growth and strong gross margins.
That combination of sales growth and margin strength is exactly what I like to see in a retail business. It suggests the company isn't just expanding, but doing so profitably.
Lovisa's store rollout is another key part of the growth story. Morgans highlighted that the company added a net 64 new stores during the half, taking its total footprint to 1,095 locations globally.
But with its shares tumbling despite the positives, the broker thinks an opportunity has opened up. It said:
We see the pull back in share price as a buying opportunity at ~23x FY27 PE.
I think that's a fair point. The share price has come back, but the underlying business appears to still be performing well. That disconnect is often where long-term opportunities can emerge.
Foolish takeaway
Both of these ASX 200 shares could be worth considering at these prices, in my opinion.
Life360 offers a technology-driven growth story with recurring revenue and a history of beating expectations. Lovisa provides exposure to a global retail brand that continues to expand its footprint while maintaining strong margins.
