Cantor Fitzgerald reiterates Overweight rating on Serve Robotics stock

Published 12/08/2025, 15:10
Cantor Fitzgerald reiterates Overweight rating on Serve Robotics stock

Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $17.00 price target on Serve Robotics (NASDAQ:SERV), citing the company’s compelling unit economics and strategic partnerships. The target represents a 70% upside from the current price of $10.00, though InvestingPro data shows the stock has experienced significant volatility, falling nearly 47% over the past six months.

The research firm highlighted Serve Robotics’ deployment of 120 robots in the second quarter, bringing its total fleet size to 400 units. Management has reaffirmed plans to deploy approximately 2,000 robots by year-end, with expectations to double the fleet size in the third quarter.

Serve Robotics plans to launch operations in Chicago this month, further expanding its geographic footprint. The company continues to leverage its partnership with Uber (NYSE:UBER) Eats, which serves as both Serve’s largest customer and largest investor with approximately an 8% stake, according to Bloomberg.

Cantor Fitzgerald noted that Serve benefits from a manufacturing partnership with Magna that enables a low-capital expenditure model. The firm expects Serve to price its long-term-per-delivery fee more competitively than the average courier cost of approximately $8.

The research firm projects that Serve’s robots will have a cost break-even period of less than two years, contributing to favorable unit economics. The company monetizes its robots through both delivery services and branding by selling advertising space on its devices.

In other recent news, Serve Robotics announced its second-quarter 2025 earnings with a reported revenue of $641,000, representing a 46% sequential growth. Despite this increase, the company posted an earnings per share (EPS) of -$0.24, which fell short of market expectations. In addition to these earnings results, Seaport Global Securities downgraded Serve Robotics’ stock rating from Buy to Neutral. The downgrade followed the company’s earnings announcement, with the research firm noting that while revenues were in line with expectations, future revenue growth is anticipated to be more significant toward the end of 2026. Serve Robotics remains on track to deploy 2,000 robots by the end of 2025. These developments highlight the challenges and opportunities facing Serve Robotics as it navigates its financial and operational goals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.