Cantor Fitzgerald raises Aurora stock target to $12

On Monday, Cantor Fitzgerald analyst Andres Sheppard reaffirmed an Overweight rating on Aurora Innovation Inc (NASDAQ:AUR) and increased the price target to $12.00, up from the prior target of $10.00. The stock, currently trading at $7.28, has shown remarkable momentum with a 126% return over the past year. According to InvestingPro data, analyst targets for AUR range from $3.59 to $15.00, reflecting the market's mixed outlook on this volatile stock. This adjustment follows Aurora's announcement on May 1 that it had successfully debuted its commercial self-driving service, named Aurora Driver, in Texas, adhering to the timeline set by the company's management.

Aurora Innovation reported that it has initiated regular driverless customer deliveries between Dallas and Houston. The company has distinguished itself as the first publicly traded entity to introduce self-driving trucks in the United States and the first to operate a commercial self-driving service with heavy-duty trucks on public roads in the country. Looking ahead, Aurora plans to extend its driverless service to El Paso, Texas, and Phoenix, Arizona by the end of 2025.

The company's progress in autonomous trucking is notable, with Aurora-equipped trucks having autonomously driven over 3 million cumulative miles, with supervision and driverless combined, as of May 7. This is an increase from approximately 2.6 million miles reported in February. Additionally, the company has delivered over 11,000 commercial loads cumulatively, compared to around 9,500 loads as of February. Despite these operational achievements, InvestingPro analysis indicates the company's overall financial health score remains "FAIR," with analysts not anticipating profitability this year.

Aurora has also achieved a significant milestone in its technology's performance. The company disclosed that it had reached an Autonomy Performance Indicator (API) of 95% in the first quarter of 2025, surpassing the 79% recorded at the end of the fourth quarter in 2024. This performance exceeds the company's commercialization goal of a 90% API, marking a significant achievement in its autonomous technology's reliability and efficiency. While the company shows strong operational progress, investors should note its current valuation metrics, including a price-to-book ratio of 7.21x, suggesting premium market pricing relative to its book value.

In other recent news, Aurora Innovation Inc. reported its Q1 2025 financial results, emphasizing its advancements in autonomous trucking. The company launched its first driverless commercial trucking operations on the Dallas-Houston route, marking a significant milestone. Despite these achievements, Aurora reported substantial operating expenses of $211 million for the quarter, with a cash and short-term investments balance of $1.2 billion. The company plans to raise $650-$850 million before achieving positive free cash flow by 2028. Revenue for the quarter was forecasted at $400,000, although explicit earnings results were not provided. Meanwhile, Oppenheimer reaffirmed its positive stance on Aurora, maintaining an Outperform rating and a $15 price target, citing the company's technological advancements. The analysts highlighted Aurora's progress in driverless technology, particularly its ability to operate in complex conditions. Aurora aims to expand its operations by the end of 2025, including night driving and adverse weather conditions, as it continues to develop its hardware and software capabilities.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.