Life Time Fitness (NYSE:LTM) Long-term Outlook Looks Good

After a recent series of investor meetings by Life Time Fitness (NYSE:LTM), Barclays (NYSE:BCS) came away with a positive, long-term outlook for the company.

Barclays said, "We recently hosted investor meetings with members of Life Time Fitness' management team. In our view, LTM has a favorable long-term outlook by virtue of its ample room for unit expansion and superior model that combines a high-quality experience at a great value...LTM should continue to see improving revenue trends due to the combination of its strategic initiatives and the economic recovery...Over the next few quarters, we think LTM will continue to see an improvement in its attrition rate, yet the rate of change will probably be slow as it faces a seasonal headwind and the comparisons become more challenging...For the near-term, we think LTM will continue to invest in providing an enhanced experience and superior value to its members.

"From here, we think the key for the stock is the speed at which the company's membership trends will respond to an improving consumer spending environment and how much margin expansion LTM will experience as its sales recover."

Barclays maintains an "Equalweight" rating on Life Time, which closed Friday at $39.20, plunging $1.35, or 3.33 percent. Barclays raised their price target on them from $36 to $37.