Mizuho's Price Target Increase#
Mizuho has raised its price target for Life Time Group Holdings Inc. to $44 from $41, while keeping an Outperform rating. This comes as the stock has seen a notable rise of 12% over the past week, currently trading at $33.59, close to its 52-week high of $35.
Strong Earnings and Growth Outlook#
The firm pointed to Life Time's first-quarter results and an optimistic revision for fiscal 2026 guidance as key factors supporting this decision. Mizuho believes that Life Time’s focus on affluent households and the growing trend toward health and wellness will help sustain its strong growth through fiscal 2027.
Business Resilience and Financial Estimates#
Mizuho noted that there are no signs of a slowdown in Life Time’s business operations. The company has expanded its revenue and profit potential by adjusting its membership mix between those with qualified medical insurance and those without. The firm also revised its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) estimates for fiscal 2026 to $940 million, up from $920 million, and for fiscal 2027 to $1,050 million, up from $1,030 million.
Recent Developments and Strategic Moves#
In addition to the price target increase, Life Time reported strong Q1 2026 earnings, with an earnings per share (EPS) of $0.42, surpassing the expected $0.33. The company’s revenue also exceeded projections, reaching $789 million against an anticipated $786.7 million. Furthermore, Life Time has announced the acquisition of the Phoenix 10K race and plans to repurchase 2,192,500 shares of its common stock at $28.60 per share. These strategic moves reflect Life Time’s commitment to enhancing shareholder value and expanding its market presence.