The rise of pickleball has had a significant impact on Life Time Group Holdings, with the upscale fitness and lifestyle company poised to benefit from the sport’s continued surge in popularity. This growth was especially evident during the Covid lockdown, which saw a significant increase in the number of players at all levels.
Bank of America analyst Alexander Perry reiterated his buy rating on Life Time Group Holdings and raised his price target, signaling a potential 27% jump in shares. This comes after the company posted strong second-quarter results and raised its financial guidance for the year. Perry believes that Life Time is in a prime position to capitalize on the growing popularity of pickleball, which continues to be the fastest-growing sport in the U.S.
Life Time has made pickleball a major part of its strategy, with plans to expand to 1,000 courts by the end of 2025. The company has already increased its number of pickleball courts and sessions significantly, catering to the increasing demand from members. CEO Bahram Akradi revealed that Life Time has invested over $100 million in pickleball, with the sport contributing up to 7% of the company’s membership dues.
Unique Offerings
In addition to expanding its court offerings, Life Time has also created a specialized ball for pickleball and hosts professional tournaments at its clubs. This emphasis on innovation and high-quality offerings sets Life Time apart as a leader in the pickleball industry, further solidifying its position in the market.
Overall, the impact of pickleball on Life Time Group Holdings is undeniable. With the sport’s popularity on the rise and the company’s strategic investments in place, Life Time is well-positioned to continue reaping the benefits of the pickleball phenomenon. As pickleball enthusiasts continue to flock to fitness and leisure clubs in search of top-notch facilities and experiences, Life Time stands out as a key player in this rapidly growing market.