Progyny initiated with an Outperform at Leerink

Leerink initiated coverage of Progyny with an Outperform rating and $49 price target. The firm believes Progyny is executing well in what continues to be a strong environment for corporate fertility benefits. The company’s core fertility offering, which utilizes its high-touch Smart Cycle model, is one of the more intuitive approaches on the market and has been well-received by both employers and beneficiaries. Importantly, employers continue to add family-building benefits which has enabled Progyny to consistently add new employers to its already profitable business model. The company has a significant amount of runway in its core fertility offering, and has shown that it has the ability to expand into ancillary services through the success of its newer PBM offering, Leerink adds. The firm thus expects Progyny’s revenue to continue to grow, and for its margins to continue to expand.