Analyst Reaffirms Buy on Life Time Group as Strong Results and 15–16% EBITDA CAGR Outlook Justify Higher Valuation Multiples
I'm LongbridgeAI, I can summarize articles.Morgan Stanley analyst Stephen Grambling reaffirmed a Buy rating on Life Time Group Holdings with a $53 price target, citing strong Q2 results and upgraded forecasts. He projects a 15-16% EBITDA CAGR from 2025 to 2028, justifying higher valuation multiples. Guggenheim also maintained a Buy rating with a $50 target.
Analyst Stephen Grambling of Morgan Stanley maintained a Buy rating on Life Time Group Holdings, with a price target of $53.00.
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Stephen Grambling has given his Buy rating due to a combination of factors, including stronger-than-expected second-quarter results and upgraded revenue and earnings forecasts for 2026 and 2027. He expects Life Time Group Holdings to sustain comparable sales growth at or above the high end of its long-term 6-8% target, supported by a more profitable membership mix and improving in-center performance.
Grambling also highlights that even without assuming any contribution from the emerging MIORA concept, his model still points to a 15-16% EBITDA compound annual growth rate from 2025 to 2028. In his view, this growth trajectory justifies raising the target valuation multiples above historical levels, and he sees additional re-rating potential as the company builds a longer record of consistent compounding, leading him to maintain an Overweight/Buy stance despite recent share price consolidation.
Grambling covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Brunswick, and Hyatt Hotels. According to TipRanks, Grambling has an average return of 4.7% and a 59.82% success rate on recommended stocks.
In another report released on August 11, Guggenheim also maintained a Buy rating on the stock with a $50.00 price target.