Analyst James Faucette of Morgan Stanley maintained a Hold rating on Verra Mobility (VRRM – Research Report), retaining the price target of $25.00.
James Faucette has given his Hold rating due to a combination of factors related to Verra Mobility’s performance and market conditions. The analysis indicates that while travel trends are slightly better than anticipated, as reflected in TSA data, the overall growth in TSA volumes has been decelerating. This deceleration suggests that while there is some positive momentum, it may not be strong enough to warrant a more optimistic rating.
Additionally, the company’s management has projected a conservative revenue outlook for 2025, expecting growth at the lower end of the 6-8% range. This cautious guidance, coupled with the company’s reliance on travel trends for near-term performance, supports the Hold rating. Despite some positive indicators, such as the potential for better-than-expected 4Q Commercial Services revenue, the uncertainties and moderate growth expectations justify maintaining a neutral stance on the stock.