Canaccord Genuity raises Progyny stock price target to $23 on stable outlook

Published 20/08/2025, 12:20
Canaccord Genuity raises Progyny stock price target to $23 on stable outlook

Investing.com - Canaccord Genuity raised its price target on Progyny (NASDAQ:PGNY) to $23.00 from $21.00 on Wednesday, while maintaining a Hold rating on the fertility benefits management company. According to InvestingPro data, the stock has shown strong momentum this year with a 31.83% YTD return, and analysis suggests the stock is currently trading below its Fair Value.

The price target adjustment follows Progyny’s second-quarter earnings beat and guidance raise announced on August 7, which Canaccord describes as evidence the company is "getting its mojo back" after facing utilization variability issues and losing Amazon (NASDAQ:AMZN)’s business last year. InvestingPro analysis reveals the company maintains excellent financial health with a ’GREAT’ overall score, supported by strong liquidity metrics and a healthy balance sheet showing more cash than debt.

Progyny management expressed confidence in adding approximately 1 million lives to its platform during the current selling season, with the company’s pipeline strengthening after a soft start earlier this year, showing strong growth in June and July.

Early client commitments are reportedly comparable to last year in terms of client numbers and revenue potential, though representing a lower number of lives, with management optimistic that later stages of the selling season will balance smaller, high-utilizing clients with larger clients that potentially have lower utilization rates.

Canaccord noted that three consecutive quarters of revenue and adjusted EBITDA outperformance are helping restore investor confidence in Progyny’s guidance reliability, though the firm maintained its Hold rating as the company enters the critical phase of its selling season to meet its growth targets.

In other recent news, Progyny Inc reported its second-quarter 2025 earnings, significantly surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $0.48, well above the forecasted $0.16. Revenue for the quarter was $332.9 million, reflecting a 9.5% increase from the previous year and exceeding projections. Additionally, Cantor Fitzgerald maintained its Overweight rating on Progyny stock with a price target of $28.00. The research firm expressed optimism regarding Progyny’s outlook for 2026, citing recent selling season commentary as a potential turning point for investor sentiment. These recent developments highlight the company’s strong financial performance and positive market outlook.

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