Pickleball fever in the USA: Life Time Group Holdings benefits from huge growth and plans further expansion
Pickleball, a fast-growing sport, is experiencing a boom in the US, leading to a 53% increase in the number of players by 2023. This trend has become a key opportunity for fitness and sports services companies, with one of the most notable being Life Time Group Holdings $LTH+2.4%, known for its focus on healthy lifestyle and fitness. Life Time not only responded immediately to the explosion in popularity of pickleball, but made it an important part of its business.
An expanding network of courts and growing sales
Life Time is investing heavily in expanding the number of pickleball courts in its clubs across the United States. During 2023, the company increased the number of fields by 43% and currently has more than 700 fields. It plans to expand its network to more than 1,000 courses by 2025. The move is in response to growing member interest - the number of hours spent on pickleball courts has increased 71% year-over-year, which has fueled the growth in membership fees. Pickleball now accounts for 7% of the Society's membership income.
Analyst optimism and share growth
With this growing interest, analysts expect Life Time Group Holdings $LTH+2.4%stock to continue to rise . Bank of America's Alexander Perry raised his target price on the stock to $30, a potential 27% increase from the current price. The company has seen its stock rise 56% in 2023, thanks to investor confidence in the company's ability to generate profits from the boom in pickleball and fitness trends.
A glimpse into the future
CEO Bahram Akradi said Life Time $LTH has already invested+2.4%$100 million in pickleball and the sport has become an important part of the company's strategy. Pickleball courts attract new members, increase the number of hours played and boost revenue from membership fees. Akradi also confirmed that the company is planning further expansion and infrastructure improvements for this popular sport.
Pickleball as a growth engine for Life Time
The growing popularity of pickleball offers Life Time Group Holdings $LTH+2.4% a great opportunity for further growth and development. The investment in this area is already yielding tangible results and if the trend continues, Life Time could become one of the key players in this fast-growing market.
Well I prefer not to have these not very well known and not very big companies in my portfolio.
Too small a company for me. The P/E is very high and the share price of course.
For a company that has been on the market for such a short time, it managed to get above its IPO value after a significant fall. That's impressive. I'm adding it to my watchlist.
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Very interesting, I didn't even know what a pickleball was until now😅 The potential is there. The sport is becoming more and more popular. We'll see what happens, but I personally won't invest yet.