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Investing.com - UBS initiated coverage on Life Time Group Holdings Inc (NYSE:LTH) with a Buy rating and a price target of $43.00 on Friday. The fitness center operator, currently trading at $24.92 with a market capitalization of $5.48 billion, has attracted attention from analysts. According to InvestingPro data, the stock’s RSI suggests oversold conditions, potentially presenting an opportunity for investors.
The investment bank’s analysis suggests Life Time’s pipeline depth could support acceleration in new unit openings, potentially delivering over 15% EBITDA upside compared to UBS estimates.
UBS notes that Life Time’s current approximately 8x multiple implies EBITDA growth of 3-5%, which falls below the bank’s estimate of 13%, though this likely includes private equity ownership overhang.
The firm highlights Life Time’s recurring revenue growing at 10-12% and projects a 14-15% EBITDA CAGR through 2027, with a sub-2x leverage ratio providing runway for cash flow conversion improvement over time.
UBS believes these factors should support a valuation multiple in the 11x+ range, setting its $43 price target based on approximately 10x-11x EV/EBITDA, in line with the company’s historical average.
In other recent news, Life Time Group Holdings Inc. reported strong financial results for the second quarter of 2025. The company exceeded analysts’ expectations with earnings per share of $0.37, surpassing the projected $0.32. Revenue also outperformed estimates, reaching $761.5 million compared to the anticipated $752.28 million. In addition to these financial achievements, Life Time has announced a partnership with Aion, naming them as the official weighted vest sponsor for select training programs and athletic events. This collaboration will see Aion’s weighted vests integrated into Life Time’s Dynamic Personal Training, Signature Group Training, and ARORA programs across its clubs in the U.S. and Canada. Aion will also sponsor Life Time’s marathon events in Miami and Chicago. These developments reflect Life Time’s ongoing efforts to enhance its offerings and partnerships.
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