PGNY - Progeny slips amid new short call from Hedgeye

2023-03-29 17:21:45 ET

Progeny ( NASDAQ: PGNY ) slipped 0.8% in regular trading and ticked up 0.2% in after hours amid a new short call idea from Hedgeye, which sees potential for 20%-30% downside.

"While PGNY's growth has been remarkable, the environment of the last 3 years has been exceptionally positive and unlikely to continue," Hedgeye analyst Tom Tobin wrote in a note on Wednesday near the end of the regular trading. "We think there are a number of points in the PGNY model that are vulnerable to the economic slowdown. In the near term, we expect the weakening economic backdrop  will result in delays in patients seeking fertility treatments, a headwind for Progyny Rx business."

Hedgeye also expects membership will be pressured by same-client attrition as employments slows/declines in some key industries. As 2023 progresses the selling environment for new client growth for 2024 is likely to deteriorate.

Progeny ( PGNY ) shares could slip 20%-30% to $22 to $25 a share, according to Hedgeye.

Progeny ( PGNY ) short interest is 8.6%.

Progeny ( PGNY ) has been the target of short reports in recent months including one from Jehoshaphat Research in December and Spruce Point in February.

Also see SA contributor Heinsite Capital's piece from late January entitled "Progyny: Expect Fast Growth Despite A Weak Macro Backdrop."

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