Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Morgan Stanley upgraded Life Time Group Holdings Inc (NYSE:LTH), a $5.7 billion market cap fitness center operator, from Equalweight to Overweight on Monday, while raising its price target to $39.00 from $34.00. The stock, currently trading at $25.91, has shown strong momentum with a 16% gain year-to-date.
The upgrade reflects Morgan Stanley’s expectation of upside to consensus estimates as accelerating new club growth drives improving membership trends. The company has demonstrated robust revenue growth of 17.25% over the last twelve months, though InvestingPro data indicates the stock’s movements remain quite volatile with a beta of 1.7.
The investment bank anticipates Life Time will maintain sustained pricing and in-center spending levels as it expands its footprint.
Morgan Stanley expects that as the company delivers results that exceed market expectations, its valuation will become more aligned with its growth algorithm.
Life Time Group Holdings operates premium fitness centers across the United States, offering comprehensive health and wellness facilities and services.
In other recent news, Life Time Group Holdings Inc. reported strong financial results for the second quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $0.37, surpassing the projected $0.32, which represents a 15.63% surprise. Revenue for the quarter reached $761.5 million, slightly above the anticipated $752.28 million. Additionally, UBS initiated coverage on Life Time Group Holdings with a Buy rating, setting a price target of $43.00. The investment bank highlighted the potential for significant growth, noting that Life Time’s pipeline could support a substantial increase in new unit openings. In another development, Life Time announced a partnership with Aion, naming them the official weighted vest sponsor for select training programs and athletic events. This collaboration will integrate Aion’s products into Life Time’s training programs across more than 185 clubs in the U.S. and Canada, as well as sponsor marathon events in Miami and Chicago. These recent developments underscore Life Time’s strategic initiatives and financial performance.
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