Life Time Group post-earnings selloff ‘unjustified,’ says Northland

Northland notes that Life Time shares dropped about 10% post-earnings despite what the firm calls “exceptional” Q2 results and and outlook that continues to beat the firm’s “already elevated expectations.” The firm blames the weakness on a potential upcoming secondary offering from certain selling shareholders, but believes the post-earnings selloff was “unjustified” given that the Q2 earnings print and call were “both strong and positive” and that secondaries have occurred post Q4 and Q1 earnings. The firm has an Outperform rating and $41 price target on Life Time shares.