Baird has raised its rating for Verra Mobility (VRRM, Financial) from Neutral to Outperform while maintaining a price target of $27. This decision is influenced by Verra's robust market position, which is expected to perform resiliently even amid challenging macroeconomic conditions. High-quality companies, like Verra, tend to experience less pressure from investors during uncertain periods, according to Baird's analysis.
One significant factor contributing to Baird's optimistic outlook is the renewal of Verra's contract with New York City, representing 16% of the company's total revenue. Additionally, the analyst suggests that states might increase their demand for traffic cameras to boost ticket revenues during tough economic times, potentially benefiting Verra's business model.
