Shares of Aurora Innovation, Inc. (NASDAQ: AUR) jumped over 23% on Wednesday. This incredible boost was triggered by the initiation of coverage by Canaccord Genuity, a renowned investment banking and financial services company. Canaccord Genuity provided a Buy rating for Aurora Innovation stock, along with a price target of $5.
Canaccord Genuity’s analyst, George Gianarikas, holds an optimistic view on the future of autonomous vehicles. He sees Aurora Innovation as a strong player in the industry, aiming to improve transportation through self-driving technology.
In a note to clients, Gianarikas praised Aurora’s management team, led by three pioneers in autonomous vehicles. He highlighted their early mover advantage in the US autonomous trucking market. Gianarikas suggested that the company has the potential to dominate the industry despite competition.
He said, “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.”.
Although Gianarikas acknowledges the need for additional funding, he expects that once investors fully understand Aurora’s promising prospects, funding opportunities will arise.
Canaccord’s DCF (discounted cash flow) model utilizes a 12% discount rate and a 5% terminal growth rate. This model supports their price target of $5. This forecast suggests that the stock has the potential to more than double from its current levels.