Serve Robotics well-positioned to gain market share: Wedbush

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Wedbush analysts said in a note following a two-day investor meeting with company management.The analysts maintained an ‘Outperform’ rating on the stock with a 12-month price target of $22, compared with a current share price of about $10.During the investor discussions, management, including CEO Ali Kashani and CFO Brian Read, highlighted the company’s ongoing efforts to improve utilization across all cities where robots are deployed.Wedbush noted that Serve is generating revenue not only from its delivery fleet but also from emerging sources such as software recurring revenue, “which focuses on receiving a fee for using the robot,” and data monetization, where operational data is sold to third parties. The analysts highlighted that Serve already noted seeing revenue for the first time in Q4 from these initiatives.Despite increasing competition in the autonomous delivery space, Wedbush said Serve remains well-positioned to gain market share, citing its “99.8% delivery completion rate with safety top of mind.”The company’s recent acquisition of Diligent Robotics was also highlighted as a key growth driver. The deal brings roughly 100 robots deployed across 25 hospitals, with built-in robotic arms to assist nurses in delivering medications and supplies.Wedbush noted that while Diligent’s robots are more expensive than Serve’s food delivery units, the acquisition “provided the foundation for Serve to enter a completely new industry while further improving its software autonomy stack to drive increased utilization.”The analysts added that the two companies have significant overlap from a software platform perspective, creating “the potential to create one software stack for all robots across these fleets.”Looking ahead, management indicated that 2026 will focus on cost optimization, particularly by reducing reliance on remote supervisors and teleoperators, which currently limit gross margins.Wedbush observed that Serve is also “aggressively ramping up its R&D investments to improve its software stack and enable more autonomous deliveries with the goal of optimizing faster deliveries and improve the optimization of its current fleet to drive down operational costs over time.”“Serve is making strides with its unique approach to autonomous last mile delivery by starting to tap into more industries and revenue streams to boost its top-line while optimizing its cost structure to ensure it reaches its profitability targets over the long-term,” the analysts concluded.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersMETA Meta Platforms, Inc. 547.59 -47.30 (-7.95%)RDDT Reddit, Inc. 124.76 -14.87 (-10.65%)BTC-USD Bitcoin USD 68,535.17 -2,203.63 (-3.12%)KOD Kodiak Sciences Inc. 39.03 +16.28 (+71.54%)SNAP Snap Inc. 3.9185 -0.5715 (-12.73%)PortfolioSign in to access your portfolioSign inTop gainersKOD Kodiak Sciences Inc. 39.05 +16.30 (+71.65%)NAVN Navan, Inc. 12.37 +3.22 (+35.16%)CAR Avis Budget Group, Inc. 143.09 +19.53 (+15.76%)BF-B Brown-Forman Corporation 26.51 +3.02 (+12.86%)ELVN Enliven Therapeutics, Inc. 40.07 +4.54 (+12.78%)Top losersPONY Pony AI Inc. 9.59 -1.80 (-15.80%)VICR Vicor Corporation 160.51 -25.49 (-13.71%)AAOI Applied Optoelectronics, Inc. 99.10 -15.32 (-13.39%)AXTI AXT, Inc. 59.22 -8.13 (-12.07%)ALM Almonty Industries Inc. 14.41 -1.93 (-11.81%)Most activeNVDA NVIDIA Corporation 172.10 -6.58 (-3.68%)MARA MARA Holdings, Inc. 8.62 +0.34 (+4.05%)SNAP Snap Inc. 3.9299 -0.5601 (-12.47%)INTC Intel Corporation 44.30 -2.89 (-6.11%)ONDS Ondas Inc. 9.62 -0.69 (-6.68%)Top economic eventsEarnings eventsMy earnings eventsEarnings events