ModivCare downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Pito Chickering downgraded ModivCare (MODV) to Hold from Buy with a price target of $40, down from $60, following the Q4 miss. Following a discussion with management, the analyst believes ModivCare’s largest customer, UnitedHealth (UNH), has transitioned some business to a competitor suddenly. If ModivCare continues to lose business it could push the company into a distressed equity, the analyst tells investors in a research note. With “several bumps on the road over the past year and struggles” with free cash flow generation, the firm says it is unable to continue recommending the stock.