Positive Outlook for Verra Mobility: Strong Q1 Results, Growth in Speed Camera Projects, and Future Role in Autonomous Vehicles

William Blair analyst Louie DiPalma has reiterated their bullish stance on VRRM stock, giving a Buy rating on April 22.

Louie DiPalma has given his Buy rating due to a combination of factors that suggest a positive outlook for Verra Mobility. The company has reported strong financial results for the first quarter, surpassing market expectations, and has maintained its guidance for 2025. Despite potential economic challenges, the company’s attractive pipeline for speed camera projects, particularly in California, is expected to drive growth.
Additionally, the total addressable market for photo enforcement in the U.S. is substantial, supported by favorable legislation, which bodes well for future expansion. Verra Mobility’s tolling division is also projected to grow steadily, even amidst a slowdown in U.S. rental car travel. Over the long term, the company is anticipated to play a key role in the autonomous vehicle sector, further enhancing its growth prospects. These factors collectively underpin the Buy rating, with expectations of the stock returning to the low $30s, fueled by growth in free cash flow per share.

In another report released on April 22, Robert W. Baird also upgraded the stock to a Buy with a $27.00 price target.