UBS Starts Life Time Group Holdings Inc (LTH) at Buy

UBS analyst Arpine Kocharyan initiates coverage on Life Time Group Holdings Inc (NYSE: LTH) with a Buy rating and a price target of $43.00.

The analyst comments: "Our checks suggest pipeline depth could support acceleration in new unit openings. Our detailed analysis of EBITDA build from ramping clubs, new club openings and pricing suggests over +15% of EBITDA upside vs. our ests, with the current ~8x multiple implying EBITDA growth of +3-5% vs. our +13% est. though that likely also includes PE ownership overhang. With recurring revenue growing +10-12%, close to +14-15% EBITDA CAGR through '27E, and sub 2x leverage ratio, we believe LTH has ample runway for cash flow conversion improvement over time which should support valuation multiple in the 11x+ range. We see risk/reward favorable with PT of $43 and a Buy rating based on ~10x-11x EV/EBITDA, in line with historical avg."

For an analyst ratings summary and ratings history on Life Time Group Holdings Inc click here. For more ratings news on Life Time Group Holdings Inc click here.

Shares of Life Time Group Holdings Inc closed at $24.92 yesterday.

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