Progyny downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Progyny to Market Perform from Outperform with a price target of $25, down from $31. Following a third straight quarter of “disappointing forward outlooks,” and with a number of questions on how to get visibility into stabilizing the growth rate, the firm is moving to the sidelines. Leerink sees the August 12 investor day as likely providing more details on how Progyny thinks about the long-term growth trajectory and the services that will get the company there, but also does not see this visibility issue being solved that quickly. Given the positive market view, and what still is a business with solid margins and cash flow generation, the firm does see potential sources of downside support, balancing its risk/reward view.