UPDATE: KeyBanc Upgrades Life Time Fitness to Buy Following Sell-Off

KeyBanc upgraded Life Time Fitness

from Hold to Buy and announced a $50.00 price target. KeyBanc noted, "By and large, we believe LTM shares (-18% vs. S&P 500 flat) have been unjustly oversold in the wake of last Thursday's pre-announcement, as we view management's decision to establish 2013 EPS guidance 8% below prior Street consensus ($2.90 vs. $3.17) as largely timing related and not indicative of a breakdown in core fundamental trends. Furthermore, we view current valuation compelling, with shares trading at a 19% discount to their trailing 3-year average forward PE multiple (12.1x vs. 15.0x) based on CY14E EPS." Life Time Fitness closed at $41.50 on Wednesday.