Serve Robotics (SERV 12.90%) stock got a big boost in Wednesday's trading thanks to bullish analyst coverage. The company's share price gained 15% in the daily session.

Before the market opened today, Wedbush initiated coverage on Serve stock with an outperform rating. While the stock saw big gains today, it's still down roughly 14% across 2025's trading.

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Serve stock surges on Wedbush note

With the analyst note it published today, Wedbush gave Serve the equivalent of a buy rating and set a one-year price target of $15 per share on the stock. As of this writing, that target implies additional upside of approximately 29%.

Wedbush pointed to Serve's strong position in automated last-mile delivery services as the key factor behind its bullish outlook on the stock. The investment firm thinks that Serve has a uniquely strong position in the category and that the company's strengths in artificial intelligence (AI) will help it deliver wins for investors.

What's next for Serve?

Serve's relationship with Uber could help the last-mile delivery specialist deliver incredible growth. Serve was acquired through Uber's acquisition of Postmates in 2020 and then spun off as its own publicly traded company in 2021. The two businesses continue to have a close relationship. Uber is Serve's largest shareholder, and it's also the smaller company's most important business partner.

With the second-quarter results it published at the beginning of this month, Serve said it expects that its 2,000-robot fleet will be fully deployed next year and reach an annualized revenue run rate between $60 million and $80 million. While that still suggests the company has a growth-dependent valuation, the stock could climb above current levels if the company manages to hit or exceed that target.