Needham analyst Chris Pierce reiterated a Buy rating on Aurora Innovation (AUR – Research Report) today and set a price target of $13.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Aurora Innovation’s strategic positioning and growth potential. The company has established a strong foothold in the autonomous trucking industry, which is valued at a trillion-dollar total addressable market, by leveraging its first mover advantage. This strategic positioning is further strengthened by Aurora’s partnerships with original equipment manufacturers and tier 1 suppliers, which create a competitive moat against emerging technological competitors.
Additionally, Pierce’s valuation of Aurora Innovation considers the company’s recent launch of autonomous trucks and the messaging from their Q1 earnings call. Despite maintaining conservative medium-term estimates, the updated target price of $13 reflects a positive outlook, based on a 12.5x multiple of the projected 2030 adjusted EBITDA, discounted back. This valuation also factors in Aurora’s potential to capture a low double-digit share of the trucking vehicle miles traveled market, supporting the Buy rating.
According to TipRanks, Pierce is an analyst with an average return of -15.5% and a 34.73% success rate. Pierce covers the Consumer Cyclical sector, focusing on stocks such as Sonic Automotive, Carvana Co, and EVgo.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $12.00 price target.