Aurora Innovation, Inc. (NASDAQ:AUR) shares traded higher on Wednesday after Canaccord Genuity initiated coverage on the stock with a Buy rating and $5 price target.
What To Know: Canaccord Genuity analyst George Gianarikas is optimistic on the future of autonomous vehicles and Aurora is well positioned in the space as a company that aims to deliver the benefits of self-driving technology to make transportation increasingly accessible and more reliable and efficient.
“Led by three AV pioneers, Aurora has strong, visionary management that has an opportunity to dominate the US autonomous trucking market given its early mover advantage and withering competitive set,” Gianarikas said in a note to clients.
The Canaccord analyst acknowledged that the company will need additional capital, but he believes once investors can fully assess Aurora’s strong prospects, funding opportunities will emerge.
Canaccord’s DCF model uses a 12% discount rate and assumes a 5% terminal growth rate to reach its price target of $5. The analyst forecast suggests the stock is poised to more than double from current levels.
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AUR Price Action: Shares of Aurora closed Wednesday up 23% at 35 cents, according to Benzinga Pro.
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