Life Time Group Holdings (LTH – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Alexander Perry from Bank of America Securities reiterated a Buy rating on the stock and has a $40.00 price target.
Alexander Perry’s rating is based on Life Time Group Holdings’ strong financial performance and growth potential. The company reported a fourth-quarter adjusted EBITDA that slightly exceeded expectations, driven by robust growth in membership dues and in-center revenue. Perry highlights that the company has shown a notable increase in center memberships and accelerated comparable center sales, which supports the decision to raise the price objective to $40.
Additionally, Perry points out the continued momentum in Life Time’s in-center business, particularly in personal training, which has seen significant growth. The company’s pricing leverage and high membership demand present a substantial opportunity for revenue growth. Furthermore, the breadth of Life Time’s offerings, including its adaptation to leisure trends like pickleball and new amenities, positions it well for future success. These factors collectively contribute to the Buy rating, reflecting confidence in the company’s ability to expand margins and capitalize on market opportunities.
In another report released on February 28, Evercore ISI also maintained a Buy rating on the stock with a $38.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LTH in relation to earlier this year.
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