Citizens Downgrades Life360 (LIF) to Market Perform Citing Skepticism Over 2026 Growth Catalysts

Life360 Inc. (NASDAQ:LIF) is one of the oversold stocks to buy now. On January 5, Citizens downgraded Life360 to Market Perform from Outperform, but without setting a price target on the shares. The firm expressed growing skepticism regarding Life360’s 2026 growth catalysts as the company’s core expansion recently decelerated. Citizens pointed out that Life360 faces difficult year-over-year comparisons after its successful 2025 US advertising campaign, while further domestic price increases appear unlikely until a significant new feature update is launched.

Additionally, on the same day, Life360 announced two major milestones: the completion of its $120 million acquisition of Nativo and surpassing 50 million Monthly Active Users/MAU in the US. The purchase of Nativo, which is a leader in advertising tech, was finalized through a deal comprised of 65% cash and 35% stock. This strategic move allows Life360 to integrate Nativo’s premium publisher network and ad tech into its own ecosystem, effectively creating a massive first-party platform designed to help brands reach families across the Life360 app, Connected TV, mobile, and other digital environments.

Earlier on December 11, DA Davidson initiated coverage of Life360 with a Buy rating and $94 price target. The firm believes that Life360 Inc. (NASDAQ:LIF) is on the cusp of establishing broader awareness in several underpenetrated global markets, which is expected to spark international growth in MAU. The firm also noted that ongoing advertising efforts, coupled with the introduction of pet GPS subscriptions, are likely to generate higher-margin revenue streams for the company.

Life360 Inc. (NASDAQ:LIF) operates a technology platform to locate people, pets, and things in North America, Europe, the Middle East, Africa, and internationally.

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