Life Time Reported 'Strong' Q2, Better-than-Expected Same Store Sales, UBS Says

MT Newswires Live08-05

Life Time (LTH) had a "strong" Q2, reporting better-than-expected underlying same-store sales growth and better unit growth, UBS analysts said in a Monday note.

Analysts said that all key Q2 metrics, including comparable center revenue and membership, were better than estimates, with Life Time seeing a significant reduction in qualified memberships.

UBS said that the stock is still undervalued and has upside, primarily due to the better unit economics of larger-scale clubs, in-center revenue contribution, and better flow-through.

"Today's results bring us closer to an EBITDA run rate improvement that looks better than our underlying assumptions, driven by both underlying member growth improvement, moderate pricing growth and healthy in-center spend," the analysts said.

UBS retained a buy rating on the stock and increased its price target to $57 from $43.

Price: 44.47, Change: +0.30, Percent Change: +0.68

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