02:55 PM EDT, 07/31/2026 (MT Newswires) -- Life Time Group's ( LTH ) earnings before interest, taxes, depreciation and amortization versus capex spend convergence is appearing closer than previously thought, with the capex spend funding a more accelerated unit growth over the next several years, UBS said in a Thursday research note.

Noting the company's Q2 results, UBS said Life Time Group ( LTH ) now sees an EBITDA run rate improvement that is being driven by both underlying member growth improvement, moderate pricing growth, as well as healthy in-center spend.

UBS sees close to $190 million or more in existing footprint EBITDA growth opportunity aided by rack rate working its way through the system over the next 2.5 years to 3 years, according to the note.

UBS said it sees another $140 million to $150 million of EBITDA coming from run rate EBITDA generation from about 13 club openings per year, meaning the path to over $1.3 billion of EBITDA is closer now likely in fiscal 2029 than in fiscal 2030 previously.

UBS maintained its buy rating with a $43 price target on the company's stock.

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