** Shares of Verra Mobility VRRM.O sink 74% to record low of $3.40 on Weds after contract termination notice from rental-car firm Avis Budget CAR.O

** "We were surprised and disappointed to receive this notice from Avis Budget Group given our longstanding partnership and the significant time invested by both parties in ongoing extension negotiations," CEO David Roberts said in the statement

** Co said it expects the termination to reduce annualized rev in its commercial services' unit, which provides tolling and vehicle registration solutions, by approx $135-$145 mln

** It also anticipates the segment's annualized profit to take a $120-$125 mln hit, before taking into account expected cost reduction initiatives

** Wall Street analysts downgraded VRRM following the news, including JP Morgan to 'underweight' from 'neutral' and Deutsche Bank to 'hold' from 'buy'

** Avg rating among 8 analysts is "hold"; median PT of $12.50 down from $26.50 a month ago, per LSEG data

** Stock now off ~85% from its 52-week intraday high of $25.83 hit last July