They also lowered their price target to $50 from $54.
In part, the firm said: "The chain remains in the early stages of a potentially multi-year new center rollout program. We continue to look favorably upon longer term prospects for LTM. Weaker membership trends at the chain lately suggest to us that a recent proliferation of smaller format and often lower cost gym alternatives is increasingly luring existing or potential members away from LTM's largeformat facilities.
"Heightened competitive pressures are unlikely to ease any time soon. We do not foresee the market awarding LTM a premium valuation until membership growth notches consistently stronger," it concluded
TheStreet Ratings team rates LIFE TIME FITNESS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIFE TIME FITNESS INC (LTM) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."