Life Time Group Holdings (LTH), mcap=$2.8bn, price $14.65 vs $15.34

Pitch: Operator of 150 fitness centers across the US. Post-Covid recovery play with the potential to double over the next 18 months. Predicated on the belief that gym visits/memberships will reach pre-pandemic levels, with 2023 revenues and EBITDA forecasted to exceed 2019 levels by c. +20% each partially driven by 16% growth in store count.

Valuation: Currently trades at 9x EBITDA for 2023 (or 11x on 2019 earnings). Target price at 15x 2023 EBITDA or $30/share.

Exp. gain: +100% to $30/share in 18 months

Full LTH write-up (free guest account required):

Leave a Comment