William Blair analyst Louie DiPalma has reiterated their bullish stance on VRRM stock, giving a Buy rating on May 8.
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Louie DiPalma has given his Buy rating due to a combination of factors that highlight Verra Mobility’s strong financial position and growth potential. The company has announced a $100 million share-repurchase program, which is indicative of its robust cash flow and commitment to enhancing shareholder value. Despite macroeconomic volatility, Verra maintains a net leverage target of 3.0 times, demonstrating financial discipline and resilience, even during challenging periods such as the COVID-19 pandemic.
Additionally, Verra’s recent contract wins, including the renewal of a significant speed camera contract in New York City, provide a clear path for revenue growth. The expansion of speed camera deployments in other cities further supports this outlook. Moreover, Verra’s tolling division is expected to continue its steady growth, contributing to the company’s overall performance. These factors collectively suggest that Verra’s stock has the potential to appreciate, justifying the Buy rating.
DiPalma covers the Technology sector, focusing on stocks such as Palantir Technologies, Motorola Solutions, and Parsons. According to TipRanks, DiPalma has an average return of -13.1% and a 58.39% success rate on recommended stocks.
In another report released on May 8, Robert W. Baird also maintained a Buy rating on the stock with a $28.00 price target.