October 2, 2022

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Software Development

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

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The inventory rate of Progyny (NASDAQ: PGNY), a femtech company that specializes in fertility and spouse and children creating positive aspects answers, has savored important expansion since its October 2019 listing – displaying that the electronic women’s wellbeing business has developed into a formidable pressure in the wake of the Covid-19 pandemic. 

Regardless of recent declining prices sparked in no small portion by a director selling $327,285.70 in stock, Progyny was awarded an normal ‘buy’ score by the 10 brokerages covering the inventory. 

Numerous analysts have scrutinized PGNY shares in the latest months. Jefferies Monetary Team started coverage on Progyny in a analysis job in December, issuing a ‘buy’ rating and a $60 target price. Whilst Citigroup minimize their ‘buy’ rating to a ‘neutral’ rating for the stock in November, the analysts also raised their focus on price for the stock from $60 to $64

Nonetheless, Zacks Investments and TheStreet not long ago slash their scores for Progyny in 2022, indicating that it may possibly be value selling up. JPMorgan Chase & Co also lifted their price goal for the company from $65 to $79 and gave the enterprise an ‘overweight’ ranking in an October investigate report. 

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As PGNY’s inventory performance heritage reveals, the inventory has climbed additional than 138% following its October 2019 floatation, but investors are probably to be involved at how the main femtech business has fared amidst the testing sector conditions of late 2021 – with inflation and fresh new Covid-19 fears paving the way for mass offer-offs. 

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The past six months displays that the inventory has drifted some 43.26% away from its all-time significant worth of $63.43, which Progyny arrived at in September 2021. 

An additional contributing element to the stock’s recent downturn has been the a little below-par Q2 revenues in 2021. While the company’s earnings have been much better than the consensus estimates above the very same period, its inventory has drifted constantly because Q3 2021. 

Progyny also posted its guidance for the comprehensive-12 months 2021 with revenues estimated to reach $520 million and EPS established to be close to $.47 at the midpoint of their array. 

“Progyny’s fertility positive aspects answer includes differentiated reward prepare design, personalised concierge-model participant support expert services and a selective community of fertility specialists,” reported Maxim Manturov, head of investment decision advice at Independence Finance Europe. “The company also features Progyny Rx, a thorough pharmacy gains resolution that presents its members entry to the medications they want in the course of remedy. In addition, it delivers businesses with reimbursement programmes for surrogacy and adoption.”

Progyny reported its Q2 success very last month with revenues slightly below and earnings better than the consensus estimates. The organization delivered its steerage for the complete-year 2021 with revenues approximated to be $520 million and EPS to be all over $.47, at the mid-level of their assortment. The mixed final results led to a gradual drop of about 20% in PGNY inventory in the to start with 50 % of August. However, the stock has witnessed a sharp recovery more than the final month or so, led by an greater optimism for its small business prospective customers.

The Increase and Increase of Femtech

The volume of businesses in the United States that offer you fertility benefits has skilled sustained advancement in new yrs as the technologies powering femtech grows. Advantages options can range from infertility prognosis and treatment to in vitro fertilization (IVF) and intrauterine insemination (IUI). Other, a lot more in depth strategies deal with egg freezing, the procurement of donor eggs or embryos, and gestational surrogacy. In one essential action for the marketplace, this kind of ideas have grown to incorporate users of the LGBTQ+ group, as very well as one mother and father. 

The Personnel Rewards Survey 2020 by the Worldwide Basis of Worker Gains Plans (IFEBP) indicates that 24% of businesses now include IVF treatment method, up from just 13% in 2016. The quantity of businesses masking egg harvesting also greater from 2% to 10% more than the same time period. Also, fertility medication climbed threefold from 8% to 24%. 

Organizations are significantly eager to undertake fertility advantages as component of their range, fairness, and inclusion attempts. By offering protection for therapy and medicine, they can not only create greater ESG reporting and also ensure that they can appeal to and retain far more expertise. 

This heightened curiosity and recognition of femtech can assist to accelerate expansion in a fledgling sector that is ripe for adoption. 

Although VC interest hasn’t been mainly forthcoming in latest decades, the pandemic-driven increase of electronic transformation and electronic wellness has aided considerable levels of publicity for women’s well being apps. 

Progyny might have confronted major downturns in share price in the latest months, but the outlook for the femtech sector as a full will have to be regarded as mostly optimistic. 

As an early trailblazer in the field, Progyny need to be regarded as a firm that possesses a great deal of upside likely. As the field grows, we can be expecting to see far more outperformance for this foremost femtech enterprise.

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