Why Life360 (LIF) Stock Is Advancing Today

Life360 (LIF) is jumping 7% after it was upgraded to Buy from Neutral by Swiss bank UBS today. The company’s platform allows its customers to keep track of “people, pets and things.” LIF also sells ads that are shown on its app. Uber (UBER) has advertised on the app.

Why UBS Upgraded LIF

The bank has become more upbeat about the medium-term outlook of LIF’s ad revenue. It believes that the firm’s ad sales can ramp up faster than the Street thinks during this period.

Among the positive catalysts for the latter business are Life360’s ad technology and its data, according to UBS.

Also importantly, the growth of the monthly active users within the tech company’s subscriber base has accelerated in three of the last four quarters, according to the bank.

UBS increased its price target on LIF stock to $55 from $52.

Additional Information About LIF

Analysts, on average, expect the company’s earnings per share to jump to 83 cents this year from 44 cents in 2023. The mean estimate calls for its revenue to climb 25% to $463 million in 2025.

In the last month, the shares have risen 6.7%, but they are down 1.5% over the last three months.

While we acknowledge the potential of LIF, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LIF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.