Hold Rating on Serve Robotics Inc: Balancing Near-Term Challenges with Long-Term Growth Potential

Seaport Global analyst Aaron Kessler has reiterated their neutral stance on SERV stock, giving a Hold rating on August 8.

Aaron Kessler has given his Hold rating due to a combination of factors related to Serve Robotics Inc’s recent performance and future outlook. The company’s second-quarter results were in line with expectations, but Kessler has adjusted his revenue and EBITDA estimates downward, anticipating that revenue growth will be more pronounced towards the end of 2026. This adjustment is due to the expectation of increased expenses in the near term, which may limit the stock’s movement until there is a noticeable improvement in revenue drivers.
Aaron Kessler remains optimistic about Serve Robotics’ long-term potential, highlighting the large total addressable market for sidewalk robots in the U.S., estimated between $7 billion and $10.5 billion. He believes the company is well-positioned to succeed in the last-mile delivery sector, with strong long-term revenue growth prospects driven by partnerships, including with Uber Eats, and potential gains from branding and licensing fees. Additionally, Kessler expects the company to achieve over 30% long-term EBITDA margins through scale efficiencies.

In another report released on August 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $10.50 price target.