Wedbush gives Serve Robotics $15 target as autonomous last-mile delivery heats up

Wedbush Securities has initiated coverage on Serve Robotics Inc. (NASDAQ:SERV) with an “Outperform” rating and a $15 price target, positioning the autonomous delivery company as a key player in the AI-driven last-mile delivery market. The rating reflects growing analyst confidence in robotics companies that can capitalize on enterprise demand for automated delivery solutions and operational efficiency.

What they’re saying: Wedbush analyst Daniel Ives sees significant potential in Serve’s autonomous delivery platform and growth trajectory.
• “We are initiating coverage on Serve Robotics with an OUTPERFORM rating and a $15 price target. In our view, Serve Robotics has established a pioneering autonomous delivery platform that is uniquely positioned to capitalize on the accelerating adoption of AI-driven last mile delivery vehicles.”
• “Serve is positioning itself within the industry by building multiple revenue streams, including delivery, software services, and advertising providing multiple avenues to generate stable top-line growth while capitalizing on increased enterprise desire to automate the commerce industry.”

Key capabilities: Serve’s robotic platform offers contactless delivery through advanced navigation technology.
• The company’s robots can safely navigate city streets and sidewalks while providing reliable service without requiring technical expertise from users.
• The platform combines AI-driven navigation with user-friendly operation, making autonomous delivery accessible for widespread commercial adoption.

Growth trajectory: Serve has ambitious expansion plans targeting significant fleet growth and market penetration.
• The company plans to grow its autonomous robot fleet to 2,000 units by the end of 2025.
• Serve is establishing new partnerships and launching operations in additional cities with favorable regulatory environments.
• The expansion strategy focuses on markets where regulatory frameworks support autonomous delivery operations.

Revenue diversification: The company is building multiple income streams beyond traditional delivery services.
• Revenue sources include core delivery operations, software services, and advertising opportunities.
• This diversified approach provides multiple avenues for stable top-line growth while reducing dependence on any single revenue channel.

Market positioning: Serve Robotics designs, develops, and operates low-emission robots for the growing automation market.
• The company is positioned to gain market share as demand rises for automation, operational efficiency, and sustainable delivery solutions.
• The focus on low-emission technology aligns with increasing corporate and regulatory emphasis on environmental sustainability in logistics operations.