Progyny (PGNY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Allen Lutz from Bank of America Securities remains neutral on the stock and has a $47.00 price target.
Allen Lutz’s Buy rating for Progyny’s stock is largely based on the company’s impressive growth story and strong momentum heading into 2024. Progyny displayed a robust financial performance in its third quarter, with new client additions that were stronger than anticipated, despite an uncertain macroeconomic environment. This performance included Progyny’s first-ever enrollment under a federal government plan, a move seen as a promising long-term growth opportunity given the potential for scalability. While this might lead to lower revenue per member in the short term, Lutz is optimistic that this channel will drive additional member growth over time.
The addition of 1.3 million members in the quarter exceeded investor expectations and has been a positive development amidst a challenging macro environment. Lutz’s investigations suggest that demand for fertility services will remain strong into 2024, in line with management’s findings. Lutz is also encouraged by improvements in Progyny’s unit economics and its margin/cash flow profile. Despite adjusting the price objective downwards to $47 (from $51) due to a compression in group multiples, Lutz maintains a Buy rating on the stock. Furthermore, he anticipates potential upside to his estimates as the selling season progresses.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $45.00 price target.
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Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PGNY in relation to earlier this year.
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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
