UBS continues to endorse Life Time Group Holdings Inc (NYSE: LTH) with a Buy rating and a price target of $43.00, signaling an anticipated upside of approximately 47% from its current trading price of $29.17. This forecast dovetails with broader market optimism as analyst price targets span from $33 to $45, reflecting a confident outlook on the company's trajectory.
According to UBS analyst Arpine Kocharyan, Life Time Group's recent quarterly performance exceeded expectations, with key indicators such as membership numbers and revenue per membership outperforming estimates. Over the previous twelve months, the company achieved a revenue growth of 15.77%, contributing to its strong "GREAT" financial health score of 3.03 on InvestingPro's comprehensive evaluation of over 1,400 US equities.
Looking forward, the fitness center operator has projected fiscal year 2026 EBITDA between $910 million and $925 million, surpassing both UBS's internal projection of $902 million and the broader Street consensus of $903 million. Revenue forecasts range from $3.30 billion to $3.33 billion—roughly a 10.7% increase—that aligns well with UBS's estimate of $3.32 billion and the Street's $3.30 billion figure. This anticipated expansion is particularly compelling due to Life Time's appealing price-to-earnings-to-growth (PEG) ratio of just 0.25, indicating the company's shares are trading at a bargain relative to their expected earnings growth.
The company reinforced its strategic plan to inaugurate 12 to 14 new clubs throughout 2026, emphasizing that the majority will be large, ground-up facilities with considerable square footage, nearly twice the size of clubs opened in 2024 and 2025. These expansions are expected to predominantly occur in the second half of 2026, with 6 to 7 club openings earmarked for the final quarter. UBS also noted that almost all these new clubs are already in various stages of construction, underscoring strong execution progress.
In recent updates, Life Time Group announced preliminary unaudited financial results for Q4 and the full year 2025, revealing solid advancement with total revenue estimated to rise by 12.2% to about $744 million in the quarter and 14.2% to near $2.99 billion for the entire year. The company projects net income growth of 226.6% in Q4 to roughly $122 million and a 138.5% increase for 2025 to around $373 million. Furthermore, earnings per share for Q3 2025 outperformed expectations, reaching $0.41 versus the forecasted $0.33, while revenue for the same period came in at $782.6 million, slightly surpassing the anticipated $770.7 million.
Adding to its expansion narrative, Life Time announced plans for a significant new athletic country club in Brooklyn's Gowanus neighborhood. This 85,000-square-foot facility will feature unique amenities, including a rooftop beach club and coworking spaces, highlighting the company's commitment to innovative and sizable venture developments.
Altogether, these developments reflect Life Time Group's solid financial footing and aggressive growth plans that continue to attract investor interest, supported by bullish analyst sentiment and corroborated by sustained operational achievements.