ModivCare downgraded to Market Perform from Outperform at Barrington

Barrington downgraded ModivCare to Market Perform from Outperform without a price target. The analyst cites near-term operational uncertainties and the company’s “massively leveraged” balance sheet for the downgrade. The firm, post the Q4 results, does not have a good argument to make for ModivCare, even at the materially reduced share price, “that does not include a meaningful benefit of the doubt, a stance which would seem more reckless than prudent.”