Earnings Update: Here's Why Analysts Just Lifted Their Life Time Group Holdings, Inc. (NYSE:LTH) Price Target To US$35.25

Life Time Group Holdings, Inc. (NYSE:LTH) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to US$30.46 in the week after its latest yearly results. Life Time Group Holdings reported US$2.6b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.74 beat expectations, being 2.1% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Life Time Group Holdings

Taking into account the latest results, the current consensus from Life Time Group Holdings' eleven analysts is for revenues of US$2.96b in 2025. This would reflect a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 62% to US$1.22. In the lead-up to this report, the analysts had been modelling revenues of US$2.94b and earnings per share (EPS) of US$1.13 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.8% to US$35.25. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Life Time Group Holdings at US$45.00 per share, while the most bearish prices it at US$22.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Life Time Group Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.7% per year. Even after the forecast slowdown in growth, it seems obvious that Life Time Group Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Life Time Group Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Life Time Group Holdings going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Life Time Group Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.