Life Time Group initiated with a Buy at Jefferies

Jefferies initiated coverage of Life Time Group (LTH) with a Buy rating and $40 price target The firm says Lifet Time is the “clear premium winner in the golden age of fitness.” The U.S. health club market is $50B, with an additional $70B wellness total addressable market, the analyst tells investors in a research note. Jefferies estimates Life Time’s “sticky” member base, recurring revenue “flywheel,” and “capital efficient” real estate model support low-double-digit revenue growth and near 30% EBITDA margins.