Life Time to Gain From New Centers, Higher-Priced Memberships, Oppenheimer Says

MT Newswires Live06-25

Life Time (LTH) could deliver continued sales and profit growth as it opens more centers, shifts toward full-priced memberships and benefits from room for a higher valuation, Oppenheimer said in a note Thursday.

Oppenheimer expects Life Time's adjusted earnings before interest, taxes, depreciation, and amortization to rise 12% to $1.14 billion in 2028, while sales are projected to increase 11% to $4.09 billion.

The investment firm said Life Time plans to open 12 to 14 centers in 2026, up from 10 in 2025, and could add more large flagship sites after 2026, which would result in strong demand, while faster growth at new centers should allow the company to replace lower-priced plans with full-priced memberships, lifting spend on other services.

Investor interest remains weak despite stronger business trends and an improved balance sheet, leaving further room for the shares to rise, according to the note.

Oppenheimer raised its price target to $60 from $43, kept its outperform rating, and said its higher target reflects stronger long-term profit forecasts and a valuation closer to those of other consumer companies.

Price: 40.02, Change: +1.15, Percent Change: +2.95

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