Cantor initiates coverage on Serve Robotics with 'overweight' rating, shares climb

Serve Robotics

22/05/2025 12:02

** Shares of sidewalk delivery robot maker Serve Robotics SERV.O rise 7.3% to $10.30 in premarket trading

** Cantor initiates coverage with PT $17 and 'overweight' rating

** Brokerage says SERV benefits from compelling unit economics, material partnerships for scale and expansion, and multiple applications that increase total addressable market

** Expects co to add an estimated 6,620 delivery robot units by FY27

** Brokerage expects co to breakeven in under two years, lowering delivery fee per robot and ensuring strong unit economics

** Cantor says co's partnership with Uber, which has a ~9% stake and is SERV's largest customer and investor, allows nationwide scaling via Uber Eats' network, with plans to deploy 2,000 robots this year, supported by a low-capex manufacturing partnership with Magna

** Up to last close, stock down 28.9% YTD

 (Reporting by Kritika Lamba in Bengaluru)

 ((Kritika.Lamba@thomsonreuters.com))