Daniel Politzer, an analyst from Wells Fargo, maintained the Hold rating on Life Time Group Holdings (LTH – Research Report). The associated price target is $16.00.
Daniel Politzer’s Hold rating on Life Time Group Holdings (LTH) is based on several factors. Firstly, LTH has demonstrated consistent EBITDA growth, exceeding expectations for the fourth consecutive quarter, primarily driven by the reduction of operational expenses. However, this growth has been achieved in the face of revenues that are at the lower end of the company’s guidance range. Furthermore, membership dues, a significant income stream for the company, making up 72% of revenues, showed a marginal decline in the last quarter.
Secondly, LTH is in the process of transitioning away from sale-leasebacks towards an asset-light business model, which indicates a strategic change in direction. However, this strategy is not without its risks, particularly in the current macroeconomic environment. The company is being selective about executing its previously planned $177 million worth of sale-leasebacks in FY23. Despite these potential challenges, the company expects to achieve positive free cash flow after capital expenditure by the end of 2Q24. This shift in strategy, combined with the anticipation of internally funding growth beyond 2024, could have also influenced Politzer’s Hold rating.
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Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LTH in relation to earlier this year.
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Life Time Group Holdings (LTH) Company Description:
Life Time Group Holdings Inc is primarily engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation and spa centers in a resort-like environment, principally in residential locations of major metropolitan areas in the United States and Canada.
Read More on LTH:
- Life Time Reports Third Quarter Fiscal 2023 Financial Results
- Life Time to Acquire Arden Hills Athletic & Social Club Property in Sacramento in Early 2024
- Life Time Group to acquire Arden Hills Athletic & Social Club in Sacramento
- Life Time Group names WellnessSpace Brands as Official Recovery Partner
- Life Time Group upgraded to Equal Weight from Underweight at Wells Fargo
