Serve Robotics Targeted at $15 by Wedbush, Eyes 2025 Expansion

Wedbush Securities has initiated coverage of Serve Robotics (SERV.US) with an "outperform" rating and a target price of $15. The firm believes that Serve Robotics is developing a groundbreaking autonomous delivery platform, leveraging the growing trend of AI-driven last-mile delivery vehicles. The platform enables the company's robot fleet to navigate safely through urban streets and sidewalks, providing reliable and user-friendly contactless services.

Analyst Dan Ives highlighted that Serve Robotics' platform allows its robot fleet to operate safely in urban environments, offering dependable and user-friendly contactless services. The company, based in Redwood City, collaborates closely with major industry players and commercial platforms to customize deployment solutions and optimize workflows. Ives noted that Serve Robotics is building multiple revenue streams, including delivery, software services, and advertising, which will provide various pathways to stable revenue growth. The company aims to expand its autonomous robot fleet to 2,000 units by the end of 2025, establish new partnerships, and operate in other cities with favorable regulatory environments.

Ives added that as the demand for automation, operational efficiency, and sustainable delivery solutions continues to rise, Serve Robotics' market position will be significantly strengthened. The company is expected to gain prominence in the coming years as cities and businesses seek to adopt its scalable and data-driven methods to modernize delivery infrastructure, positioning it as a key driver of the next wave of urban commercial development. Key factors driving this growth include the expansion of the robot fleet to multiple cities, reaching 2,000 units by the end of 2025, and the establishment of strategic partnerships with numerous restaurants and enterprises across the United States.