11:34 AM EDT, 10/16/2024 (MT Newswires) -- Life Time Group's ( LTH ) preliminary Q3 results were stronger-than-projected and indicate that momentum has likely continued into the current quarter so far, Morgan Stanley said Wednesday.

The company's Q3 results showed Tuesday that its revenue likely jumped nearly 19% year-over-year to $693.2 million. Analysts were looking for $678 million, according to Morgan Stanley.

The brokerage projects Life Time's Q4 revenue at $658 million as "the complexion of the 3Q results suggest the business has momentum."

"We await next week's results to get a better sense of the contribution from growth in dues vs. in-center spend, but broadly it would appear that [Life Time Group ( LTH )] is not seeing any sort of consumer fatigue in its membership base," Morgan Stanley said.

The firm raised its price target on the company's stock to $29 from $21, with an equal-weight rating.

Shares of Life Time Group ( LTH ) declined over 2% in recent trading.

Price: 25.39, Change: -0.64, Percent Change: -2.46