Life Time Group (LTH) is well positioned to benefit from its high income member base and room to expand wallet share through in-center services, RBC Capital Markets said in a Tuesday note.
Investor interest centered on in-center growth, new club growth, balance sheet leverage and capital allocation, according to the note.
RBC said Life Time's median household income rose to $160,000 in 2025 from $119,000 in 2021, supporting what it sees as a favorable backdrop for spending across the membership base.
However, RBC analysts said the biggest growth opportunity remains growing wallet share from existing users of in-center services, especially dynamic personal training, which it said accounts for about half of in-center revenue.
The research firm also noted new club productivity is improving, with some locations reaching maturity at 24 months, faster than the historical average and site selection becoming more efficient.
RBC maintained its outperform rating on Life Time and raised its price target to $43 from $38.
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