May 19, 2024

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Specialists in technology

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

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The stock selling price of Progyny (NASDAQ: PGNY), a femtech firm that specializes in fertility and spouse and children developing benefits solutions, has loved major progress given that its October 2019 listing – showing that the digital women’s overall health market has developed into a formidable pressure in the wake of the Covid-19 pandemic. 

In spite of the latest declining charges sparked in no compact element by a director offering $327,285.70 in inventory, Progyny was awarded an regular ‘buy’ ranking by the 10 brokerages covering the inventory. 

Numerous analysts have scrutinized PGNY shares in current months. Jefferies Monetary Team started coverage on Progyny in a study part in December, issuing a ‘buy’ score and a $60 goal rate. Even though Citigroup slash their ‘buy’ score to a ‘neutral’ score for the stock in November, the analysts also raised their focus on rate for the inventory from $60 to $64

On the other hand, Zacks Investments and TheStreet not too long ago minimize their ratings for Progyny in 2022, indicating that it could be really worth selling up. JPMorgan Chase & Co also lifted their rate goal for the company from $65 to $79 and gave the organization an ‘overweight’ rating in an October investigate report. 

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As PGNY’s stock effectiveness record exhibits, the stock has climbed extra than 138% pursuing its Oct 2019 floatation, but traders are very likely to be concerned at how the major femtech business has fared amidst the tests current market conditions of late 2021 – with inflation and fresh new Covid-19 fears paving the way for mass offer-offs. 

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The previous six months shows that the inventory has drifted some 43.26% away from its all-time significant value of $63.43, which Progyny attained in September 2021. 

A further contributing factor to the stock’s new downturn has been the slightly beneath-par Q2 revenues in 2021. Even though the company’s earnings have been greater than the consensus estimates in excess of the very same period, its stock has drifted constantly due to the fact Q3 2021. 

Progyny also posted its steering for the complete-calendar year 2021 with revenues approximated to attain $520 million and EPS set to be around $.47 at the midpoint of their assortment. 

“Progyny’s fertility rewards resolution involves differentiated reward strategy design, personalised concierge-design participant aid solutions and a selective community of fertility experts,” explained Maxim Manturov, head of investment information at Independence Finance Europe. “The firm also presents Progyny Rx, a detailed pharmacy gains solution that provides its associates access to the medications they need to have during therapy. In addition, it gives employers with reimbursement programmes for surrogacy and adoption.”

Progyny documented its Q2 benefits very last thirty day period with revenues marginally beneath and earnings greater than the consensus estimates. The organization provided its assistance for the total-12 months 2021 with revenues approximated to be $520 million and EPS to be all around $.47, at the mid-issue of their selection. The blended benefits led to a gradual drop of in excess of 20% in PGNY inventory in the 1st half of August. Having said that, the inventory has witnessed a sharp recovery over the previous thirty day period or so, led by an improved optimism for its organization prospective clients.

The Increase and Rise of Femtech

The quantity of firms in the United States that give fertility rewards has professional sustained development in modern years as the engineering powering femtech grows. Added benefits designs can variety from infertility analysis and medication to in vitro fertilization (IVF) and intrauterine insemination (IUI). Other, extra comprehensive designs protect egg freezing, the procurement of donor eggs or embryos, and gestational surrogacy. In 1 crucial move for the market, this sort of plans have developed to integrate users of the LGBTQ+ group, as very well as one dad and mom. 

The Personnel Advantages Survey 2020 by the Worldwide Basis of Staff Positive aspects Strategies (IFEBP) indicates that 24% of companies now deal with IVF treatment, up from just 13% in 2016. The range of organizations covering egg harvesting also amplified from 2% to 10% in excess of the very same interval. Also, fertility medicine climbed threefold from 8% to 24%. 

Companies are more and more keen to undertake fertility advantages as element of their range, equity, and inclusion attempts. By giving coverage for treatment method and medication, they can not only create much better ESG reporting and also assure that they can attract and keep a lot more expertise. 

This heightened interest and recognition of femtech can help to speed up expansion in a fledgling market that’s ripe for adoption. 

Even though VC fascination has not been mostly forthcoming in new a long time, the pandemic-driven increase of digital transformation and digital wellness has aided sizeable concentrations of publicity for women’s health applications. 

Progyny may have faced considerable downturns in share selling price in recent months, but the outlook for the femtech market as a entire need to be regarded as mostly positive. 

As an early trailblazer in the market, Progyny need to be regarded as a business that possesses a lot of upside potential. As the industry grows, we can anticipate to see additional outperformance for this main femtech corporation.

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