ModivCare downgraded to Market Perform from Outperform at Barrington

Barrington analyst Michael Petusky downgraded ModivCare (MODV) to Market Perform from Outperform with no price target While the firm likes the company’s decision to shift many of its shared risk contracts to fee for service agreements, which should provide quicker collections and improved cash flow visibility, it needs “to see this effort produce results,” the analyst tells investors. While the actions the company is now taking could work, the firm’s conviction is “just not high enough to bet on it with a constructive rating until we see proof,” the analyst added.