Goldman Sachs raises Life Time Group stock price target on membership growth

Goldman Sachs has increased its price target on Life Time Group Holdings Inc (NYSE:LTH) shares from $53 to $56, maintaining a Buy rating. The stock currently trades at $45.35, close to its 52-week high of $47.32. The firm highlighted Life Time's strong third-quarter performance, with enhanced membership growth and pricing trends anticipated to persist in the fourth quarter.

The company reported sequential membership growth rates that surpassed expectations, despite the reduction of subsidized memberships. Both existing and new members' in-center spending attachment increased, driven by a surge in digital personal training and Life Spa services. This growth should alleviate concerns about the variable revenue stream and underscore the durability of member spending trends.

Life Time's revenue growth of 13% over the past year bolsters this optimistic outlook, although InvestingPro analysis indicates the stock might be overvalued at current levels relative to its Fair Value estimate. The firm also noted that costs associated with opening seven new centers in the fourth quarter are manageable. Goldman Sachs raised its fiscal 2026-2027 forecasts based on these positive trends and its confidence in sustained top and bottom line expansion.

Life Time Group Holdings' third-quarter 2026 financial results further demonstrated its robust financial health and operational success. The company exceeded Wall Street expectations, reporting adjusted earnings of $0.51 per share, surpassing the estimated $0.40, and revenue of $893.5 million, surpassing the forecasted $874.9 million.

Life Time's strong performance in comparable center revenue growth (8.7%) and adjusted EBITDA (16.5% increase to $256.3 million) reflects its premium fitness and wellness operator's success. Analysts have not issued any recent upgrades or downgrades following the earnings announcement.