Jefferies cuts PT, earnings forecasts for ASX-listed Life360 on higher costs

Life360

15/11/2023 20:07

** Jefferies cuts price target for ASX-listed Life360
 360.AX  to A$13.40 from A$14
    ** Lowers earnings forecasts by 8%, 602% and 55% for FY23,
FY24 and FY25, respectively
    ** Location-sharing co on Wednesday reported Q3 net loss of
$6.5 mln; revenue of $78.6 mln, up 38% YoY 
    ** Co said it will roll out its Triple Tier Membership in
Australia by H1'24, after rollout in UK in early October 
    ** Jefferies says the membership expansion will lead to
greater costs; raises cost margin assumptions for R&D and
marketing and S&M, and have lowered their FY23 to FY25 earnings
estimates
    ** All six analysts covering the stock rate it "buy" or
higher; their median PT is A$11.05 – LSEG data
    ** Stock up 82.72% this year, as of last close
    
     

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))