Wedbush Securities has initiated coverage on Serve Robotics Inc. (SERV.US) with an "Outperform" rating and a $15 price target. The firm believes Serve Robotics Inc. is establishing a pioneering autonomous delivery platform with unique advantages to capitalize on the growing adoption of AI-driven last-mile delivery vehicles.

Analyst Dan Ives noted that the company's platform enables its robotic fleet to safely navigate city streets and sidewalks while providing reliable, contactless service that requires no technical expertise from users. Additionally, the Redwood City-based company works closely with major industry players and merchant platforms to customize deployment solutions and optimize workflows.

Ives added: "Serve Robotics Inc. is carving out a position in the industry by building multiple revenue streams including delivery, software services, and advertising, providing various pathways for achieving stable revenue growth while capitalizing on the increasing corporate demand for automating commercial industries. The company plans to expand its autonomous robot fleet to 2,000 units by the end of 2025 and establish new partnerships while expanding operations to other cities with favorable regulatory environments. As demand continues to grow for automation, operational efficiency, and sustainable delivery solutions, Serve Robotics Inc.'s market position will be strongly reinforced."

Looking ahead, Serve Robotics Inc. is expected to emerge prominently in the coming years as cities and businesses seek to adopt the company's scalable, data-driven approach to modernizing delivery infrastructure, making it a key driver of the next wave of urban commercial development.

Key catalysts include: Serve Robotics Inc. expanding its robot count to 2,000 units across multiple cities by the end of 2025, and expanding operations to new cities with strong urban influence and favorable regulations. Additionally, strategic partnerships with multiple restaurants and businesses across the United States are anticipated.