-- Life Time (LTH) is expected to post robust comparable club growth in Q1, with slightly better-than-expected revenue and EBITDA, as investors focus on concerns around member growth metrics per center and spending trends in a softer macro environment, UBS Securities said Friday.
Ahead of the company's Q1 results on Tuesday, the investment firm said it sees upside to its Q1 EBITDA estimate of $215 million and expects comparable club revenue growth of about 7% to 7.5%.
UBS said the key investor debate centers on whether the company can sustain growth in revenue per member and overall club economics amid pressure on consumer spending.
The brokerage also noted that Life Time could continue repurchasing stock from sponsors, helping reduce overhang, while keeping leverage below its 2x target.
UBS has a buy rating on the stock, with a price target of $43.
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