Serve Robotics (SERV) is "uniquely" positioned to capitalize on the growing demand for automated, last-mile delivery vehicles, Wedbush said in a report Wednesday.
Wedbush has initiated coverage of Serve Robotics with an outperform rating and a $15 price target, citing the company's "first-mover advantage" in autonomous last-mile delivery and plans to rapidly scale operations, the report said.
The company, founded in 2021 as a spin-off from Postmates, uses Level 4 autonomous robots to navigate city streets and sidewalks. It plans to expand its fleet to 2,000 robots by the end of 2025 and launch operations in new cities with "favorable" regulations, Wedbush said.
Serve Robotics is building multiple revenue streams through delivery services, software offerings and advertising, positioning itself to benefit from rising demand for low-cost, contactless delivery solutions. Traditional couriers typically charge $8 to $10 per trip, while Serve Robotics is targeting $1 per delivery over time, according to the note.
This cost advantage, along with its strategic partnerships and proprietary technology, is expected to help the company gain market share in the increasingly competitive delivery landscape, Wedbush said.
Price: 11.88, Change: +1.61, Percent Change: +15.67
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.