Courtesy of Benzinga.
In a report published Tuesday, Stifel analyst Steven Wieczynski downgraded the rating on Life Time Fitness, Inc. (NYSE: LTM) from Buy to Hold, and removed the $56.00 price target.
In the report, Stifel noted, “We are downgrading shares of LTM from Buy to Hold (Street covers with 4 Buys and 4 Holds), as we believe the risk/reward tradeoff is geared to the downside at current levels. Recall, LTM is currently considering the strategic separation of its real estate and operating assets into an Operating Company (Opco) and a separately traded REIT (Propco). As a result, shares currently trade at an over two-turn valuation premium of 17.2x CY15E EPS versus a trailing five-year historical average of 14.9x. While we view the valuation premium as justified based on our belief that a pro-forma sum-of-the-parts could be worth $60 to $70, we have a tough time identifying enough of an incremental upside opportunity based on core fundamentals over the next 12 months to maintain our Buy rating.”
Life Time Fitness closed on Monday at $56.71.
Latest Ratings for LTM
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2015 | Stifel Nicolaus | Downgrades | Buy | Hold |
Oct 2014 | Stifel Nicolaus | Maintains | Buy | |
Jul 2014 | Wedbush | Downgrades | Outperform | Neutral |
View More Analyst Ratings for LTM
View the Latest Analyst Ratings
Posted-In: Steven Wieczynski StifelAnalyst Color Downgrades Analyst Ratings