ModivCare price target lowered to $10 from $25 at Barrington

Barrington lowered the firm’s price target on ModivCare (MODV) to $10 from $25 and keeps an Outperform rating on the shares after ModivCare announced that it had secured $75M in incremental financing and additionally has another $30M capital commitment from Coliseum Capital, but also withdrew its FY24 and FY25 guidance while announcing that it had appointed Chad Shandler as its new Chief Transformation Officer. The firm sees the CTO appointment, capital raise, and covenant relief as positives, but calls the withdrawn financial guidance “quite disappointing.” However, the firm still “strongly” believes there is inherent value within ModivCare that can and will be unlocked via asset sales, the analyst tells investors.