Life Time Group Holdings: Each Center Continues To Generate More Revenue

An analyst has issued a 'Buy' rating on Life Time Group Holdings (LTH), highlighting its strong membership growth and increasing revenue per location, driven by a capital-light expansion model and enhanced in-center service utilization. The company's deleveraging efforts and improved margins are contributing to robust adjusted-EBITDA growth, with LTH trading at attractive single-digit EBITDA multiples, suggesting undervaluation and potential for long-term outperformance as a diversification play against expensive growth stocks.

Analysis

An analyst has reiterated a "Buy" rating on Life Time Group Holdings (LTH), positioning it as an undervalued opportunity and a diversification play as the broader market retreats from highs. The bullish thesis is supported by strong operational momentum, including robust membership growth and increasing revenue per location, which are attributed to a capital-light expansion model, a growing mix of high-tier memberships, and higher in-center service utilization. Financially, the analysis highlights the company's successful deleveraging efforts and margin improvements as drivers of strong adjusted-EBITDA growth. The core valuation argument is that LTH trades at an attractive single-digit EBITDA multiple, suggesting its current price does not fully reflect its strengthening fundamentals. It is noted that this analysis comes from an author with a disclosed long position in the stock.

Key Decisions for Investors

• Given the reported operational momentum and improving financials, investors could assess Life Time Group Holdings as a potential long position, particularly if seeking exposure to consumer health trends.
• It is prudent to independently verify the claim of an 'attractive single-digit EBITDA multiple' by comparing LTH's valuation against its historical data and direct industry competitors to confirm the undervaluation thesis.
• Investors should consider that the recommendation originates from an analyst with a disclosed long position and evaluate LTH's role primarily as a portfolio diversifier rather than a high-beta growth holding.