Life Time Group Holdings Inc (LTH) PT Lowered to $18 at Mizuho Securities
Mizuho Securities analyst John Baumgartner lowered the price target on Life Time Group Holdings Inc (NYSE: LTH) to $18.00 (from $24.00) while maintaining a Buy rating.
The analyst commented, "Q4's revenue and EBITDA were in-line with guidance but COVID's delta/omicron variants delay memberships recovery by 1-2 quarters. The delay, and investments to accommodate the recovery, accentuate EBITDA pressure. We estimate implied full-year FY22 EBITDA of ~$285MM to ~$320MM (vs. Street's $405MM) but trading at ~18x our CY22E EBITDA (pro forma for est. sale-leaseback proceeds), a 25% discount vs. exercise peers, preserves the positive risk/reward. We are reducing our FY22E and FY23E EBITDA, to $311MM (vs. prior $418MM) and $503MM (vs. prior $558MM) and our 12-month PT to $18 from $24. On 3/16, we are hosting an investor call with CFO Tom Bergmann."