Pickleball’s explosive rise has at least one major beneficiary: Life Time Group Holdings. Bank of America analyst Alexander Perry said the upscale fitness and lifestyle company will reap rewards from the continued surge in popularity of pickleball, a sport that exploded during the coronavirus lockdowns and has been growing ever since. Attracting more players of all levels. Perry reiterated a buy rating on Life Time on Friday, raising his price target by $1 to $30, implying a 27% upside from the last close. The stock is up more than 56% this year, with investor optimism rising sharply in the quarter as Life Time reported strong second-quarter results on Aug. 1 and raised full-year financial guidance. “We believe LTH, as the largest provider of pickleball in the United States, is best positioned in our recreational coverage to capitalize on the sport’s continued fastest-growing popularity in the United States,” Perry said in a statement Friday. The number of pickleball courts has increased by 71%, Perry said. Pickleball is an important part of Life Time’s strategy as the company’s “Sports Country Club” currently has more than 700 permanent pickleball courts. All offer this sport. The company plans further, Perry added. Bahram Akradi, CEO and founder of Life Time, told CNBC in early August that Life Time has invested as much as $100 million in pickleball, and that the sport generates up to 7% of membership dues for Life Time. The company creates stronger, faster balls specifically for pickleball and conducts professional tournaments at its clubs for the American Pickleball League and the Professional Pickleball Association.
