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

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