On Wednesday, BofA Securities maintained a Buy rating for Life Time Group Holdings Inc (NYSE:LTH), with a steady price target of $30.00. The decision followed Life Time's pre-announcement of third-quarter results for 2024, which surpassed expectations and coincided with the company's initiative to refinance its existing notes.
Life Time reported a total revenue of $693 million, which was above both BofA Securities' and Wall Street's estimates of $675 million and $676 million, respectively. The company's adjusted EBITDA also exceeded forecasts, coming in at $180 million compared to the anticipated $175 million by BofA Securities and $172 million by Wall Street.
Membership numbers were a strong point for Life Time, with the reported 827,000 center memberships exceeding the Street's expectation of 823,000. This increase in memberships contributed to an acceleration in comparable center sales, which rose to 12.1% from 12.0% in the previous quarter, outperforming the Street's projection of a 10.5% increase.
Based on the third-quarter performance, BofA Securities has adjusted its full-year 2024 adjusted EBITDA estimate for Life Time upward from $650 million to $655 million. The firm's reiteration of the Buy rating and $30 price objective reflects confidence in Life Time's financial health and growth trajectory following the third-quarter results.
InvestingPro Insights
Life Time Group Holdings Inc's (NYSE:LTH) strong third-quarter performance is further supported by recent InvestingPro data. The company's revenue growth of 17.97% over the last twelve months as of Q2 2024 aligns with the impressive revenue figures reported in the pre-announcement. Additionally, the EBITDA growth of 39.49% during the same period underscores the company's ability to expand its profitability, which is reflected in the better-than-expected adjusted EBITDA for Q3.
InvestingPro Tips highlight that Life Time is trading near its 52-week high, with a strong return of 74.23% over the last year. This performance is consistent with the positive momentum described in the article and the company's ability to exceed market expectations. However, investors should note that the stock is trading at a high P/E ratio of 44.83, which may indicate that much of the company's growth potential is already priced in.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Life Time Group Holdings, providing deeper insights into the company's financial position and market performance.
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