Broker says this ASX 200 tech share can rise ~20%

One leading broker is saying good things about this tech stock.

| More on:
a group of people sit around a computer in an office environment.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking for options in the tech sector, then Life360 Inc (ASX: 360) shares could be worth considering.

That's the view of analysts at Bell Potter, which believe the ASX 200 tech share can keep rising from here.

That's despite the location technology company's shares climbing almost 60% since the start of May.

Created with Highcharts 11.4.3Life360 PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

What is Bell Potter saying about this ASX 200 tech share?

According to a note, the broker has retained its buy rating with an improved price target of $9.25.

Based on the current Life360 share price, this implies a potential upside of almost 20% for investors over the next 12 months.

Bell Potter notes that the company will be releasing its half-year results next month. And while it acknowledges that some investors may be anticipating an upgrade to the company's full-year guidance, the broker isn't expecting one until its third-quarter update. It said:

Life360 is scheduled to report its Q2/H1 result on 15th August and we expect another solid quarter for company. We do not, however, expect as strong a quarter for paying circles growth in Q2 as in Q1 due to the price rises put through for Android users in the US in April.

[W]e only expect Life360 to reiterate its 2023 guidance and see the potential of an upgrade as much more likely after the Q3 result given the churn event will have largely passed and Q3 is traditionally the strongest quarter for the company.

But the broker doesn't believe this should put off investors from snapping up this ASX 200 tech share in the meantime. It continues to believe that the company has a bright future ahead of it. Particularly given its potential to enter and disrupt other markets.

Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.

Should you invest $1,000 in Boral right now?

Before you buy Boral shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Boral wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Man ponders a receipt as he looks at his laptop.
Technology Shares

Why I think the Xero share price is in the buy zone

The Xero share price has lost about 17% of its value over the past two months.

Read more »

A corporate team or board stands together and looks out the window.
Technology Shares

How are the 'Magnificent Seven' reacting to Trump's tarrifs in aftermarket trade?

It goes without saying that these companies tend to set the agenda for the entire US stock market.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why did David Dicker sell down $67 million of Dicker Data shares in March?

Are this CEO's share sales a red flag?

Read more »

Business people discussing project on digital tablet.
Technology Shares

Down 26%: Broker says this is an 'opportunity to buy' this top ASX 200 tech stock

Hub24 Ltd (ASX: HUB) shares have taken a tumble over recent weeks, but one leading broker believes this could be…

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Technology Shares

Brainchip shares storm higher on big news

What is getting investors excited about this tech stock on Wednesday?

Read more »

Two men in business attire play chess.
Technology Shares

Own WiseTech shares? Guess what it just acquired

Let's dig deeper into what the tech stock is acquiring and why.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Technology Shares

This ASX tech share just hit a 52-week low, I think it's a great buy

Despite recent pain, I think this stock is a strong option.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Technology Shares

Bell Potter says this ASX 200 tech stock could jump 40%+ after the market selloff

The leading broker has good things to say about this growing company.

Read more »