Riding the Femtech Wave: Why Progyny is a Key Stock for Investors to Track


The inventory price tag of Progyny (NASDAQ: PGNY), a femtech business that specializes in fertility and loved ones developing rewards options, has appreciated important expansion considering the fact that its Oct 2019 listing – demonstrating that the electronic women’s health and fitness business has developed into a formidable pressure in the wake of the Covid-19 pandemic. 

In spite of recent declining selling prices sparked in no small section by a director selling $327,285.70 in inventory, Progyny was awarded an typical ‘buy’ rating by the 10 brokerages covering the stock. 

Several analysts have scrutinized PGNY shares in new months. Jefferies Economical Team began coverage on Progyny in a investigation position in December, issuing a ‘buy’ score and a $60 target price tag. Despite the fact that Citigroup slice their ‘buy’ rating to a ‘neutral’ score for the stock in November, the analysts also lifted their goal value for the inventory from $60 to $64

Nonetheless, Zacks Investments and TheStreet a short while ago cut their scores for Progyny in 2022, indicating that it may be worth promoting up. JPMorgan Chase & Co also lifted their selling price objective for the enterprise from $65 to $79 and gave the organization an ‘overweight’ score in an October analysis report. 

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As PGNY’s stock functionality heritage demonstrates, the stock has climbed far more than 138% subsequent its Oct 2019 floatation, but investors are probably to be involved at how the main femtech company has fared amidst the testing market place conditions of late 2021 – with inflation and refreshing Covid-19 fears paving the way for mass market-offs. 

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The past six months exhibits that the stock has drifted some 43.26% absent from its all-time substantial benefit of $63.43, which Progyny reached in September 2021. 

Yet another contributing component to the stock’s current downturn has been the somewhat beneath-par Q2 revenues in 2021. While the company’s earnings have been greater than the consensus estimates about the similar time period, its inventory has drifted consistently because Q3 2021. 

Progyny also posted its advice for the entire-year 2021 with revenues believed to get to $520 million and EPS set to be close to $.47 at the midpoint of their assortment. 

“Progyny’s fertility benefits solution consists of differentiated benefit approach style, personalised concierge-style participant assist companies and a selective network of fertility experts,” mentioned Maxim Manturov, head of investment decision information at Flexibility Finance Europe. “The corporation also features Progyny Rx, a detailed pharmacy positive aspects solution that gives its associates obtain to the medicines they need to have for the duration of remedy. In addition, it provides employers with reimbursement programmes for surrogacy and adoption.”

Progyny reported its Q2 benefits last month with revenues somewhat down below and earnings improved than the consensus estimates. The organization provided its direction for the total-12 months 2021 with revenues believed to be $520 million and EPS to be about $.47, at the mid-stage of their selection. The mixed outcomes led to a gradual decrease of more than 20% in PGNY inventory in the to start with half of August. Having said that, the stock has found a sharp recovery about the previous thirty day period or so, led by an amplified optimism for its business prospective buyers.

The Increase and Increase of Femtech

The quantity of businesses in the United States that supply fertility rewards has professional sustained expansion in new years as the technology powering femtech grows. Gains strategies can vary from infertility analysis and treatment to in vitro fertilization (IVF) and intrauterine insemination (IUI). Other, much more complete options cover egg freezing, the procurement of donor eggs or embryos, and gestational surrogacy. In a single important step for the industry, these types of ideas have developed to integrate associates of the LGBTQ+ community, as nicely as solitary mom and dad. 

The Employee Added benefits Study 2020 by the Intercontinental Basis of Worker Gains Programs (IFEBP) implies that 24% of organizations now deal with IVF cure, up from just 13% in 2016. The quantity of corporations masking egg harvesting also enhanced from 2% to 10% above the same period of time. Likewise, fertility medicine climbed threefold from 8% to 24%. 

Organizations are ever more eager to undertake fertility added benefits as section of their range, equity, and inclusion initiatives. By giving protection for therapy and medication, they can not only build better ESG reporting and also make certain that they can appeal to and keep extra expertise. 

This heightened desire and awareness of femtech can assistance to accelerate development in a fledgling industry that is ripe for adoption. 

While VC fascination hasn’t been mainly forthcoming in current many years, the pandemic-pushed rise of digital transformation and digital wellness has aided substantial degrees of publicity for women’s overall health applications. 

Progyny might have confronted considerable downturns in share cost in current months, but the outlook for the femtech industry as a complete have to be regarded as mainly good. 

As an early trailblazer in the marketplace, Progyny will have to be regarded as a agency that possesses a good deal of upside likely. As the sector grows, we can assume to see much more outperformance for this top femtech business.



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