Shares of Serve Robotics Inc (NASDAQ:SERV) soared 21.1% to $11.63 on Thursday afternoon following a bullish analyst report from Cantor Fitzgerald.

What To Know: The firm initiated coverage on the autonomous delivery robot company with an Overweight rating and a 12-month price target of $17, representing nearly 50% upside from current levels.

Cantor Fitzgerald analysts cited several catalysts for growth, including Serve's strategic partnerships with Uber Eats and Magna, competitive unit economics and multiple revenue streams beyond meal delivery, such as robot-mounted advertising and potential expansion into last-mile package logistics.

The company's collaboration with Uber Eats, which includes deploying 2,000 delivery robots by year-end, is expected to significantly scale its reach.

“Through Uber Eats’ network of >6,000 cities and >600,000 restaurant partners, we believe this partnership will allow Serve to scale up deliveries nationwide,” the analysts said in an initiation note.

Cantor also highlighted Serve's low-cost delivery model, estimating long-term fees as low as $1.50 per trip versus an $8 average for human couriers. Serve's Gen-3 robots, built via Magna's contract manufacturing, support its capital-light expansion strategy, the analyst firm said.

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How To Buy SERV Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Serve Robotics’ case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, SERV has a 52-week high of $24.35 and a 52-week low of $1.77.

Photo: courtesy of Serve Robotics.