Pickleball, a sport that gained immense popularity during the Covid-19 lockdown, has continued to attract a growing number of players at all levels. This surge in interest has directly benefitted companies like Life Time Group Holdings.
According to Bank of America analyst Alexander Perry, Life Time Group Holdings is well-positioned to capitalize on the rising popularity of pickleball. The company has significantly increased its investment in the sport, with plans to expand its number of pickleball courts to 1,000 by the end of 2025.
Perry reiterated his buy rating on Life Time, raising the price target to $30, which implies a potential 27% increase in the company’s shares. The stock has already seen a substantial increase this year, with strong second-quarter results prompting investor optimism.
Pickleball is a central part of Life Time’s strategy, with more than 700 permanent pickleball courts already in place and the sport offered at 75% of its clubs. The company’s CEO, Bahram Akradi, emphasized the importance of pickleball, stating that it has contributed up to 7% of Life Time’s membership dues.
With the total number of pickleball players in the U.S. increasing by 53% to 13.6 million in 2023, the sport shows no signs of slowing down. Life Time’s continued investment in pickleball, including the development of a specialized ball and the hosting of professional tournaments, is a testament to its commitment to the sport’s growth.
The explosive rise of pickleball has not only transformed the sporting landscape but has also had a significant impact on companies like Life Time Group Holdings. As the popularity of pickleball continues to soar, Life Time’s strategic focus on the sport positions it as a key player in the industry’s evolution.