Progyny (PGNY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst David Larsen from BTIG remains neutral on the stock and has a $45.00 price target.
David Larsen’s Buy rating for Progyny (PGNY) is primarily based on the company’s robust performance in the third quarter of 2023 and the strong demand in the fertility market. The company reported total revenue of $280.9M, which exceeded expectations, and a growth of 35% in fertility revenue and 38% in pharmacy revenue. The report also highlights the company’s successful selling season where it added 85+ new clients and 1.3M newly covered lives. Despite concerns about a potential slowdown in the labor market, demand for Progyny’s services remains high and the company retains nearly all of its clients.
Additional factors contributing to Larsen’s rating include Progyny’s impressive rate of new client wins and its ability to keep adding more services to the existing client base. The company has also raised its full-year 2023 guidance for revenue, EBITDA, and EPS. Progyny’s high-quality solution, resilience to macro conditions, and success in increasing employee satisfaction while reducing maternity costs across populations are also considered as positives. Furthermore, the company’s recent win with a federal government plan and its expansion into other family building services are seen as signals of its vast long-term potential. The rating also takes into account that Progyny currently trades at EV / 1.8x 2025E sales and 10x 2025E EBITDA.
Larsen covers the Healthcare sector, focusing on stocks such as Sharecare, Omnicell, and Simulations Plus. According to TipRanks, Larsen has an average return of -10.9% and a 28.62% success rate on recommended stocks.
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Progyny (PGNY) Company Description:
Progyny, Inc. is a medical device company, which engages in the field of reproductive medicine, translating scientific discoveries related to early embryo development into clinical tools. Its services include egg freezing, IVF treatment, surrogacy, podcast, adoption, and Eeva Test. The company was founded on April 03, 2008 and is headquartered in New York, NY.
Read More on PGNY:
- Progyny, Inc. Announces Third Quarter 2023 Results
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- The Broken Brown Egg and Progyny Launch 2023 Awareness, Hope, and Activism Grant™ to Help BIPOC Individuals and Couples Expand Their Families
- Progyny, Inc. Announces Details for Its Third Quarter 2023 Results Report
- Progyny price target lowered to $45 from $50 at BTIG
