Progyny (PGNY – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst David Larsen from BTIG maintained a Buy rating on the stock and has a $50.00 price target.
David Larsen has given his Buy rating due to a combination of factors that indicate the solid standing and future potential of Progyny’s business. Despite a slight miss in revenue and adjusted EBITDA for the fourth quarter of 2023, the company demonstrated a robust year-over-year growth, signaling healthy demand for its services. While the underperformance in the quarter was attributed to a lower-than-expected utilization of fertility services, which is commonly affected by seasonal trends, Progyny has shown optimistic signs of utilization rebounding in the early first quarter of 2024. Moreover, the management remains confident that the impact of the recent Alabama court ruling will be non-material for the company.
Progyny’s full-year 2024 guidance remains strong, with expectations of a recovery in treatment mix and an anticipated ramp-up in revenue across the remaining quarters. The company foresees additional growth from new clients and expansions in covered lives, which reinforces the positive outlook. Further, the sustained demand for fertility benefits and the company’s ability to leverage its leading clinical outcomes to attract employers underscores Progyny’s robust market position. With new service lines on the horizon and a significant untapped market potential, the prospects for revenue diversification and growth appear promising. This potential, coupled with a valuation that suggests room for stock appreciation, underpins Larsen’s Buy recommendation and a price target set at a higher future earnings valuation multiple.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $43.00 price target.
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Based on the recent corporate insider activity of 91 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 Fourth Quarter 2023 Results
- Progyny initiated with an Outperform at Leerink
- PGNY Earnings this Week: How Will it Perform?
- Progyny, Inc. Announces Details for Its Fourth Quarter and Full Year 2023 Results Report
- Vistia Health selects Progyny as fertility, family building benefits provider
