Progyny price target lowered to $18 from $24 at Canaccord

Canaccord lowered the firm’s price target on Progyny to $18 from $24 and keeps a Hold rating on the shares. The firm cut estimates after Progyny share re-rated lower on the “surprising news” that its largest client, representing roughly 670,000 members will be transitioning from the company’s fertility and family-building benefits offering at year-end. However, the analyst believes the contract loss is an anomaly and not indicative of an overall change in Progyny’s risk profile of increasing attrition or a stable end-market demand for fertility and family-building benefit offerings. Canaccord expects the shares to be range-bound for a period of time until Progyny demonstrates that utilization and client retention are not continuing issues.