Cautious Outlook for Life Time Group Holdings: Hold Rating Amid Revised Financial Forecasts

Morgan Stanley analyst Megan Alexander has maintained their neutral stance on LTH stock, giving a Hold rating on October 16.

Megan Alexander has given his Hold rating due to a combination of factors reflected in the updated financial forecasts for Life Time Group Holdings. The adjustments in the projections for the fiscal year 2024 show a slight decrease in expected revenue and adjusted EBITDA, with the EBITDA margin also seeing a minor reduction. These changes indicate a cautious outlook on the company’s near-term financial performance.
Furthermore, the forecast for 2025 has also been revised downward, with lower revenue and adjusted EBITDA estimates, though the price target remains unchanged. This suggests that while there is some potential for growth, the company may face challenges in achieving its financial targets, justifying a Hold rating as investors may want to wait for clearer signals of improvement before committing to further investment.

In another report released on October 16, Wells Fargo also assigned a Hold rating to the stock with a $25.00 price target.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling 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.