Pickleball: The Sport That's Picking Up Pace

Is America's new favorite pastime about to give Life Time Group Holdings a major boost? Bank of America analyst Alexander Perry certainly thinks so. In a recent note to clients, Perry reiterated his buy rating on the upscale fitness and lifestyle company, raising his price target by $1 to $30. What's driving this bullish outlook? None other than the explosive growth of pickleball, a sport that has taken the nation by storm since the start of the pandemic. Perry points out that Life Time is uniquely positioned to capitalize on this trend, as it is already the largest provider of pickleball courts in the U.S. The company has expanded its number of courts by 43% and pickleball sessions by a whopping 71% since the beginning of this year alone. By the end of 2025, Life Time plans to have invested up to $100 million into pickleball, bringing its total count of dedicated courts to an impressive 1,000. But is investing in more pickleball really a smart long-term strategy? While the sport has certainly gained a lot of traction recently, it remains to be seen if this popularity will last.

After all, many fitness crazes have come and gone over the years (remember when everyone was doing CrossFit or spinning classes?). Only time will tell if pickleball is here to stay. That said, Life Time seems confident in its decision to embrace the sport. CEO Bahram Akradi has stated that pickleball has already brought in up to 7% of the company's membership dues. And with the average age of a pickleball player being around 38 years old, it could help attract a younger demographic to Life Time's clubs. So what does all this mean for investors? Should they jump on the bandwagon and buy shares now before they potentially soar even higher? Or is the stock already pricing in too much good news about pickleball? These are important questions to consider as you evaluate whether Life Time is a smart addition to your portfolio. Just remember, while pickleball may be all the rage right now, it's crucial to look at the bigger picture and not get caught up not get caught up in

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