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

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The stock value of Progyny (NASDAQ: PGNY), a femtech business that specializes in fertility and spouse and children setting up gains answers, has liked important progress since its Oct 2019 listing – displaying that the digital women’s well being industry has developed into a formidable force in the wake of the Covid-19 pandemic. 

Even with current declining costs sparked in no smaller portion by a director offering $327,285.70 in stock, Progyny was awarded an common ‘buy’ ranking by the 10 brokerages masking the inventory. 

A lot of analysts have scrutinized PGNY shares in the latest months. Jefferies Monetary Group began protection on Progyny in a exploration function in December, issuing a ‘buy’ rating and a $60 focus on rate. Even though Citigroup reduce their ‘buy’ ranking to a ‘neutral’ score for the inventory in November, the analysts also raised their target price tag for the inventory from $60 to $64

On the other hand, Zacks Investments and TheStreet not too long ago cut their ratings for Progyny in 2022, indicating that it could be really worth promoting up. JPMorgan Chase & Co also lifted their price goal for the business from $65 to $79 and gave the enterprise an ‘overweight’ ranking in an October exploration report. 

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As PGNY’s stock performance record demonstrates, the inventory has climbed much more than 138% pursuing its October 2019 floatation, but traders are likely to be concerned at how the main femtech company has fared amidst the tests market place disorders 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 reveals that the stock has drifted some 43.26% absent from its all-time large value of $63.43, which Progyny achieved in September 2021. 

Another contributing component to the stock’s modern downturn has been the a little underneath-par Q2 revenues in 2021. Whilst the company’s earnings have been improved than the consensus estimates above the exact period of time, its inventory has drifted continually given that Q3 2021. 

Progyny also posted its steerage for the total-12 months 2021 with revenues believed to reach $520 million and EPS established to be all-around $.47 at the midpoint of their selection. 

“Progyny’s fertility rewards answer features differentiated profit program design and style, personalised concierge-type participant help services and a selective community of fertility specialists,” mentioned Maxim Manturov, head of financial investment tips at Freedom Finance Europe. “The organization also provides Progyny Rx, a comprehensive pharmacy advantages solution that gives its users access to the medications they require during procedure. In addition, it presents businesses with reimbursement programmes for surrogacy and adoption.”

Progyny claimed its Q2 final results previous thirty day period with revenues a bit beneath and earnings much better than the consensus estimates. The company provided its direction for the total-12 months 2021 with revenues approximated to be $520 million and EPS to be all over $.47, at the mid-place of their variety. The combined final results led to a gradual drop of about 20% in PGNY inventory in the 1st 50 percent of August. On the other hand, the stock has witnessed a sharp restoration above the past month or so, led by an amplified optimism for its enterprise potential clients.

The Increase and Increase of Femtech

The volume of providers in the United States that give fertility rewards has seasoned sustained development in new yrs as the engineering powering femtech grows. Rewards designs can assortment from infertility analysis and medication to in vitro fertilization (IVF) and intrauterine insemination (IUI). Other, much more extensive strategies go over egg freezing, the procurement of donor eggs or embryos, and gestational surrogacy. In one particular important stage for the business, these kinds of designs have developed to integrate customers of the LGBTQ+ group, as effectively as single moms and dads. 

The Worker Advantages Study 2020 by the Intercontinental Foundation of Worker Added benefits Ideas (IFEBP) implies that 24% of businesses now deal with IVF treatment, up from just 13% in 2016. The amount of companies masking egg harvesting also improved from 2% to 10% above the very same interval. Also, fertility treatment climbed threefold from 8% to 24%. 

Organizations are increasingly eager to adopt fertility added benefits as component of their range, fairness, and inclusion efforts. By giving protection for treatment method and medicine, they can not only acquire better ESG reporting and also be certain that they can attract and keep much more expertise. 

This heightened fascination and awareness of femtech can enable to speed up growth in a fledgling industry that is ripe for adoption. 

Despite the fact that VC curiosity hasn’t been mainly forthcoming in recent a long time, the pandemic-pushed rise of electronic transformation and digital wellness has aided significant ranges of exposure for women’s health programs. 

Progyny may possibly have faced substantial downturns in share rate in latest months, but the outlook for the femtech marketplace as a entire will have to be regarded as largely good. 

As an early trailblazer in the business, Progyny should be regarded as a agency that possesses a lot of upside likely. As the field grows, we can hope to see far more outperformance for this primary femtech firm.

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