Business · Markets · 1 hr ago
Bell Potter keeps its buy rating on Life360 after shares fall nearly 40%
Life360, a location technology company listed on the Australian Securities Exchange, has seen its shares fall nearly 40% since the start of 2026.
Bell Potter says higher marketing costs and the absence of a tariff refund are expected to reduce the company’s adjusted EBITDA margin in the third quarter of its 2026 financial year.
The broker expects a margin of 18.3%, in line with the company’s indication of about 18%, and sees scope for Life360 to do slightly better.
It does not expect the company to raise its 2026 guidance when it releases its quarterly results on 10 November.
However, growth in monthly active users or paying circles could support the lower end of Life360’s target for 17% to 20% user growth in 2026.
Bell Potter kept its buy rating but lowered its price target from $33 to $32, citing weaker software and app share valuations and a higher risk-free rate.
The quarterly results may affect investor views, although the broker says expectations are already low.
Bell Potter has retained its buy rating on Life360 after its shares fell almost 40% since the start of 2026.
The broker trimmed its price target to $32 from $33, citing weakness in software and app stocks and a higher risk-free rate.
At a share price of $20.34, the target implies potential upside of 57% over the next 12 months.
Bell Potter expects Life360 to meet or exceed its forecast third-quarter adjusted EBITDA margin of 18.3%.
The broker does not expect an upgrade to 2026 guidance when the quarterly results are released on 10 November.
- Who
- Bell Potter and Life360.
- What
- Bell Potter retained its buy rating on Life360 shares and cut its price target to $32 from $33.
- When
- The article was published on 11 October 2026. The quarterly results are expected on 10 November.
- Where
- Not stated.
- Why
- Bell Potter said the lower target reflects weakness in software and app stocks and an increase in the risk-free rate.
This story does not have two clearly opposing sides.
We ourselves forecast a margin of 18.3% in Q3 and expect our forecast to at least be met if not exceeded.
The net result is a 6% decrease in our TP to $32.00 which is still a material premium to the share price so we maintain our BUY recommendation.
The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.
Life360 shares were down almost 40% since the start of the year.
Life360 released its second-quarter result, after which the share price weakened, according to Bell Potter.
Life360's quarterly result is scheduled for release.
- Share price decline
- Almost 40% since the start of 2026
- Bell Potter rating
- Buy, retained
- Price target
- $32, trimmed from $33
- Share price cited
- $20.34
- Implied upside
- 57% over the next 12 months
- Expected Q3 adjusted EBITDA margin
- Bell Potter forecast 18.3%
Sources
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