ModivCare falls as Barrington slashes PT

ModivCare

14/01/2025 15:02

** Shares of healthcare service provider ModivCare  MODV.O 
fall 5.3% to $6.30
    ** Barrington slashes PT on MODV to $10 from $25; maintains
"outperform" rating 
    ** New PT represents a 50.4% upside to the stock's last
close
    ** Brokerage says MODV withdrew its FY/24 and FY/25 guidance
due to "slower-than-expected" expense reductions and headwinds
associated with the re-underwriting of certain NEMT contracts
    ** MODV's path to financial stability will be heavily
reliant on monetizing its existing assets, particularly the
remote patient monitoring and personal care businesses -
Barrington 
    ** Brokerage estimates personal care segment worth $480 mln
and remote monitoring business worth $240 mln
    ** Brokerage says it assumes ~$1.3 bln in net debt for MODV
12 months from now
    ** MODV fell 73.3% in 2024

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))