ModivCare downgraded to Hold from Buy at Jefferies

Jefferies analyst Brian Tanquilut downgraded ModivCare to Hold from Buy with a price target of $39, down from $60. The analyst says investors will take a skeptical view of the company’s fiscal 2024 EBITDA guidance given the 10% shortfall versus Street estimates and the “steep ramp” for the year implied by its low Q1 EBITDA outlook. Given this earnings uncertainty and investor concerns surrounding cash burn and balance sheet, ModivCare is now a “show-me” story that likely trades sideways in the near-term, the analyst tells investors in a research note.