Shares of Life360 (NASDAQ:LIF) have gained around 18% since the company's initial public offering (IPO) in June.

The company is in the "fast lane," with competitively priced products that are device and operating system agnostic, according to Stifel.

The Life360 Analyst: Mark Kelley initiated coverage of Life360 with a Buy rating and price target of $37.

The Life360 Thesis: Given its specialized solutions that are OS-agnostic, the company can continue driving user penetration and "access a much larger user base and additional use cases that smartphone native solutions do not address," Kelly said in the initiation note.

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Life360 has "significant runway in its core markets" and net subscriber growth is likely to be driven by "additional use cases the company plans to invest in, such as elderly care and auto insurance," he added.

"We believe the introduction of advertising will only generate modest churn within the company's existing highly-engaged user base, and instead provides yet another conversion opportunity for free users to convert into paid users," the analyst wrote.

Life360 should be able to roll out a tiered subscription offering to additional international markets, he added.

LIF Price Action: Shares of Life360had risen by 0.36% to $31.90 at the time of publication on Tuesday.

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Image: Life360