Goldman Sachs Pumps Up Life Time Group with Buy Rating

Goldman Sachs has initiated coverage on Life Time Group Holdings Inc (NYSE:LTH) with a Buy rating and a price target of $53.00.

The stock currently trades at $45.10, with an attractive PEG ratio of 0.31, suggesting growth at a reasonable price.

Goldman Sachs values the opportunities to improve membership mix and raise dues system-wide, which could lead to top-line growth of 10% to 12% and same-store sales growth of 6% to 8% in the medium term.

The firm noted that this growth rate is among the best in its coverage and expects Life Time to capitalize on robust demand by expanding into high-income areas where it can command higher dues relative to legacy centers.

Life Time Group Holdings reported strong second-quarter earnings, surpassing Wall Street expectations with adjusted earnings of $0.48 per share and revenue of $866 million.