There are a lot of options for investors to choose from in the tech sector.
But one of the best according to Bell Potter could be the ASX tech stock in this article.
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Which ASX 200 tech stock?
The stock that Bell Potter is tipping as a top buy is location technology company Life360 Inc. (ASX: 360).
The broker is bullish on the company's outlook and sees next month's quarterly update as a potential catalyst for its share price. It explains:
Life360 will report its 2Q2026 result on 11th August and we see it as a potential catalyst for the share price for three key reasons: 1. We expect MAU growth to rebound to 4.3m – consistent with 2Q2025 – if not higher (VA consensus is 4.6m) which importantly will imply an exit run-rate of close to 5m given the Android issues which persisted into April and even May; 2. We expect paying circle growth to be strong again at c.155k which is notably above VA consensus of c.135k and even see upside risk to our forecast closer to the 1Q2026 result of 202k;
And 3. If paying circle growth is >155k then we see potential for a further upgrade to 2026 revenue and EBITDA guidance as paying circle growth is obviously the key driver of subscription revenue. Note also that, if MAU growth is around or above our forecast then we would expect Life360 to maintain its 2026 MAU guidance of 17-20% growth which we would regard as positive given it implies growth of at least 5m in Q3 and Q4.
Life360 shares tipped to rise strongly
According to the note, Bell Potter has retained its buy rating on the ASX 200 tech stock with an improved price target of $35.00 (from $33.00).
Based on its current share price of $27.46, this implies potential upside of 27% for investors over the next 12 months.
Commenting on its investment thesis, the broker said:
We have rolled forward our EV/EBITDA valuation by a year – so that 2027 is now the base – given we are now in 2H2026. We apply a 25x multiple compared to 30x previously. We have also modestly reduced the WACC we apply in the DCF from 9.6% to 9.5% given the prospect of a good Q2 result and potential guidance upgrade. The net result is a 6% increase in our target price to $35.00 which is >15% premium to the share price so we maintain our BUY recommendation.
Life360 is our key pick amongst the large tech stocks we cover based on quality, valuation and potential catalysts. We note the stock looks reasonable value on a 2027 EV/EBITDA multiple of c.23x versus the FY27 EV/EBITDA of Technology One (which has a September year end) of c.26x.
