Shares in location services company Life360 Inc (ASX: 360) are languishing near the lower end of their 12-month range, begging the question, is it time to buy back in?
According to the analyst team at Macquarie, the answer to that question is yes, with the broker having a bullish share price target on the company. We'll get to that shortly.
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Further strong growth tipped
Let's have a look at what the company's been up to first. It's reasonable to say there hasn't been much news flow out of the company for a while, outside of the annual report which was released in mid-April.
In that report, Executive Chair Chris Hulls said the company was coming off a "landmark year" in 2025, where it had record revenue growth, record net subscriber additions, and the first full year of positive net income.
Adjusted EBITDA more than doubled he said, and the company also launched its Pet GPS offering across five global markets.
Late last year, Life360 also acquired Nativo, which is key to the company's advertising division, Mr Hulls said.
Further on that, Mr Hulls said the acquisition "transforms our advertising business into a full-stack platform''.
He went on to say:
The US digital advertising market exceeds $400 billion, with more than $100 billion flowing across the open web and connected TV where Life360's first-party family location data offers brands targeting and real-world measurement that simply does not exist elsewhere.
Mr Hulls said the company's adjusted EBITDA margin expanded from 12% in 2024 to 19% in 2025, "remain[s] on a clear path toward our long-term target of 35% and beyond''.
Shares looking cheap
The Macquarie team argues that Life360 is "still early in its growth trajectory''.
They said the advertising business could be lucrative.
As they said:
Even modest advertising average revenue per user on a largely fixed cost base could drive meaningful operating leverage towards the company's longer-term margin ambition. At current levels, the stock screens asymmetric, capitalising a mature subscription profile while ascribing limited value to advertising optionality.
Macquarie said the business also had a strong moat, with families willing to share their location data, and the app worked across both Apple and Google's operating systems which was a bonus.
Macquarie has a price target of $32.20 on Life360 shares compared with $20.10 currently. The broker described the current share price as "an attractive entry to a strong top-line growth story with operating leverage potential''.
Life360 is scheduled to release its first quarter results to the ASX on 12 May.
