Serve Robotics (SERV) is positioning itself to create multiple revenue streams for steady top-line growth while leveraging demand for autonomous last-mile delivery driven by consumer expectations for fast delivery at lower costs, Wedbush said in a Thursday research report.

The company's robot fleet is capable of catering to delivery platforms including DoorDash (DASH) and Uber (UBER) Eats, and is expected to ramp utilization rates and expand its reach in the last-mile delivery market, the analysts said.

Serve Robotics posted in-line Q3 revenue due to a ramp in delivery volumes as markets in Los Angeles, Miami, Dallas, and Atlanta are scaling fast. The company offered positive updates to its near- and long-term roadmap as it builds the foundation for expansion across US cities in the coming years, according to the note.

Wedbush reiterated its outperform rating on the stock with a price target of $22 per share.

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