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Verra Mobility rated buy despite 40% YTD drop, with growth and margin gains expected by 2027

Analyst Insights
20 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Verra Mobility (VRRM) shares have fallen 40% year-to-date due to slower revenue growth and a key New York City contract renewal at lower margins. Despite these challenges, the company is rated a buy because of its deep customer integration and positive industry trends. Management forecasts modest revenue and adjusted EBITDA growth by 2026, with cost savings from the MOSAIC platform expected to improve operating margins by 150 basis points by 2027. The stock appears undervalued by 22% based on a discounted cash flow model, though risks remain around contract renewals and competitive bidding pressures.

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