Progyny plummets as big client plans to terminate services agreement

Progyny

19/09/2024 15:34

(Updates)
    ** Shares of fertility benefits management firm Progyny Inc
 PGNY.O  fall to 30.17% to over four-year low of $17.03, last
down 28.5% 
    ** Co was recently notified by a significant client that it
has elected to exercise a 90-day option to terminate its
services agreement, effective as of Jan. 1, 2025 - filing
    ** Says there have not been any disputes or issues of
concern with the client during the course of service
    ** The client represents ~670,000 members, as of June 30,
2024, comprising 12% co's revenue for the six-month period ended
June 30, 2024
    ** At least three brokerages cut PT 
        ** Brokerage Leerink Partners lowers PT to $21 from $25,
says, "The loss of Progyny's largest customer by revenue adds
further questions to the company's already murky long-term
growth trajectory"
  
    ** Stock down ~53% YTD

 (Reporting by Sriparna Roy and Sneha S K in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))