Life Time (LTH) has more room to grow as it plans to open more clubs, shift more members to full price plans, and use stronger cash flow to fund expansion, Oppenheimer said in a note Wednesday.
The company is slowly moving away from lower-priced memberships as many clubs run near capacity and replacing them with full-price plans that can also boost spending on in-club services, the investment firm said.
Life Time plans to open 12 to 14 clubs in 2026, up from 10 in 2025, with a focus on larger new builds and more "flagship" clubs after 2026, according to the note.
The stock still trades at a low valuation near post-IPO lows, despite the company's stronger fundamentals, improved balance sheet, and growth outlook, Oppenheimer analysts noted.
Oppenheimer maintained the company's outperform rating with a $43 price target.
Price: 25.43, Change: -2.43, Percent Change: -8.71
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