Life Time (LTH) is positioned to drive revenue growth and a potential valuation re-rating through better unit economics, higher-value memberships and a solid pipeline of new openings, UBS Securities said in a note Thursday.

Life Time has a pipeline of about 80 to 100 clubs at various stages of development, UBS noted.

The company is targeting fewer members per location but higher utilization and overall revenue, supported by price increases during club pre-sales and adjustments to legacy membership pricing.

The firm also highlighted a shift toward family memberships, which tend to have lower churn than individual members and can support higher revenue per membership.

Pricing actions and higher in-club spending are expected to support more than 5% same-store growth in 2026, UBS said, while noting opportunities to expand in-center revenue through food, beverage and spa service offerings.

UBS reiterated a buy rating on Life Time with a $43 price target.

Price: 26.10, Change: -0.54, Percent Change: -2.03