BUZZ-ModivCare falls as Barrington slashes PT

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;))