On Wednesday, Life Time Group Holdings Inc (NYSE:LTH), which has seen its stock surge nearly 96% over the past year, saw its price target increased by Craig-Hallum from $33.00 to $40.00. The firm's analyst retained a Buy rating on the company's stock. According to InvestingPro data, the company is currently trading near its 52-week high of $28.60, reflecting strong market confidence. The revision follows a recent visit to Life Time's latest athletic country club in Rosemount, MN, which spans 96,000 square feet and showcases the brand's newest amenities. These include an outdoor pool, both indoor and outdoor pickleball courts, Normatec compression boots, cold plunges, dedicated fitness studios, childcare services, and ample parking.
The analyst believes that the Rosemount facility exemplifies the direction Life Time is taking and underscores the company's potential for significant growth over the next decade. With an impressive revenue growth of 18.12% and a market capitalization of $5.86 billion, the company has shown strong momentum. The decision to raise the price target was also influenced by Life Time's stronger-than-anticipated fourth-quarter results and the initial guidance for 2025, which was shared last week.
Life Time's newest club is designed to cater to a wide range of customer needs and preferences, setting a new standard for the company's offerings. The inclusion of advanced amenities and services is seen as a strategic move to enhance the customer experience and drive membership growth.
The company's positive performance in the fourth quarter and the promising outlook for 2025 have contributed to the analyst's optimistic perspective. The raised estimates and price target are reflective of the company's current trajectory and expected future performance.
Investors have responded to the updated price target and the maintained Buy rating, with Life Time Group Holdings Inc's stock responding positively to the news on Wednesday. The market's reaction indicates confidence in the company's growth strategy and its ability to execute on its expansion plans. InvestingPro subscribers can access 14 additional investment tips and a comprehensive Pro Research Report for deeper insights into the company's valuation and growth prospects.
In other recent news, Life Time Group has been the subject of several analyst updates following robust fourth-quarter earnings and a positive outlook for 2025. RBC Capital revised Life Time Group's stock target to $31 from $27, emphasizing the need for management to clarify strategies for expanding new center growth beyond the projected 10-12 units for 2025. Guggenheim analysts also adjusted Life Time's stock price target to $32.00, up from the previous $29.00, while maintaining a Buy rating on the stock.
Life Time Group reported significant revenue growth of 18.12% over the last twelve months, reaching $2.52 billion. This growth was attributed to a 12% increase in per-member spend. The company's EBITDA margin has improved, stabilizing at 26%, and the updated guidance for 2025 suggests deployable cash is on track to approach $400 million, exceeding Guggenheim's original projections.
In terms of future expectations, Life Time anticipates total revenue to climb 12.2% to $2,910-$2,970 million in 2025, significantly above the $2,800 million analyst consensus. These recent developments highlight the company's strong performance and provide an optimistic outlook for the future. As always, investors are advised to consider these updates in light of their own investment goals and risk tolerance.
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