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

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.

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.