RBC Capital lifts Life Time Group stock target to $31 from $27

Published 17/01/2025, 20:12
RBC Capital lifts Life Time Group stock target to $31 from $27

The RBC Capital analyst noted the positive aspects of Life Time Group's announcement, stating that there was little to critique. However, the analyst emphasized the need for management to clarify strategies for expanding new center growth beyond the 10-12 units projected for 2025, to sustain growth in the following years.

In light of these developments, RBC Capital has raised its estimates for the company.For deeper insights into Life Time Group's valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis including 13 additional ProTips and detailed financial metrics in the Pro Research Report.Investors can expect to receive more detailed information during Life Time Group's full earnings release and conference call, which has been scheduled for February 27, 2025.

The company's recent performance and forward-looking guidance appear to have established a strong foundation for its stock's future trajectory as reflected in the updated price target from RBC Capital. Based on current metrics, InvestingPro's Fair Value analysis suggests the stock is currently trading above its intrinsic value.

The RBC Capital analyst noted the positive aspects of Life Time Group's announcement, stating that there was little to critique. However, the analyst emphasized the need for management to clarify strategies for expanding new center growth beyond the 10-12 units projected for 2025, to sustain growth in the following years.

In light of these developments, RBC Capital has raised its estimates for the company.For deeper insights into Life Time Group's valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis including 13 additional ProTips and detailed financial metrics in the Pro Research Report.Investors can expect to receive more detailed information during Life Time Group's full earnings release and conference call, which has been scheduled for February 27, 2025. The company's recent performance and forward-looking guidance appear to have established a strong foundation for its stock's future trajectory as reflected in the updated price target from RBC Capital. Based on current metrics, InvestingPro's Fair Value analysis suggests the stock is currently trading above its intrinsic value.

The RBC Capital analyst noted the positive aspects of Life Time Group's announcement, stating that there was little to critique. However, the analyst emphasized the need for management to clarify strategies for expanding new center growth beyond the 10-12 units projected for 2025, to sustain growth in the following years. In light of these developments, RBC Capital has raised its estimates for the company.

In other recent news, Life Time Group Holdings Inc (NYSE:LTH) reported a significant fourth-quarter earnings beat and an above-consensus guidance for the year 2025. The company's strong revenue growth of 18.12% over the last twelve months, reaching $2.52 billion, was attributed to a 12% increase in per-member spend. Guggenheim analysts have adjusted Life Time's stock price target to $32.00, an increase from the previous $29.00, while maintaining a Buy rating on the stock.

Life Time Group's EBITDA margin has stabilized at 26%, an improvement over the previous target range of 24-25%. The updated guidance for 2025 suggests that Life Time Group's deployable cash is on track to potentially approach $400 million, exceeding Guggenheim's original projections.

In other recent developments, Life Time Group Holdings, Inc. reported preliminary fourth quarter results for 2024, surpassing analyst expectations with an estimated total revenue increase of 18.5% to $661-$663 million. For the full year 2024, the company projects total revenue to grow 18.2% to $2,619-$2,621 million, exceeding the $2,600 million analyst forecast.

Looking ahead to fiscal 2025, Life Time anticipates total revenue to climb 12.2% to $2,910-$2,970 million, significantly above the $2,800 million analyst consensus.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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