Life Time Group Holdings is nearing an inflection point where it will be able to fund its new club openings through free cash flow, rather than continuing to rely on selling and leasing back its real estate, Jefferies analysts say in a note. "The bear case that LTH 'needs' sale-leasebacks to generate cash flow is on its last legs," the analysts say. With that inflection expected in 2030, as well as a widening competitive moat, strong member productivity, expanding margins and a visible long-term growth runway, the analysts say the stock deserves a higher multiple. They raise their price target on the stock to $51 from $41. Shares fall 0.9% to $40.64. ([email protected])
Dow Jones Newswires
Life Time is Close to Self-Funding its New Openings — Market Talk
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Life Time Group Holdings is nearing an inflection point where it will be able to fund its new club openings through free cash flow, rather than continuing to rely on selling and leasing back its real estate, Jefferies analysts say in a note. "The bear case that LTH 'needs' sale-leasebacks to genera…