BTIG upgraded Progyny (NASDAQ: PGNY), a global leader in women’s health and family building, from Neutral to Buy, setting a 12-month price target of $28.
The upgrade follows signs of improving demand after a slowdown in 2024. BTIG noted that Progyny’s valuation appears attractive, supported by a strong balance sheet, healthy cash flow, and capable leadership. A recent survey of approximately 15 health plans indicated that Progyny is expected to gain significant market share, with many payers viewing the company as a high-quality offering with reasonable pricing. The data also suggested Progyny’s services could contribute to managing overall healthcare cost trends.
Macro tailwinds are also expected to support the company’s performance, including a stabilizing labor market, moderating inflation, and a more favorable political environment for fertility services such as IVF following the U.S. elections.
In its most recent earnings report on February 27, Progyny posted Q4 2024 earnings per share (EPS) of $0.42, beating the consensus estimate of $0.37. Revenue came in at $298.43 million, ahead of the $275.01 million forecast.
The company is scheduled to report its Q1 2025 results on May 7. Wall Street expects EPS of $0.18 and revenue of $303.47 million.
Progyny has a consensus rating of “Overweight” and a mean price target of $26.75, which implies a potential upside of 19.7% from the current stock price.
