Aurora Innovation (AUR) Could Be 38% Undervalued On Arrow McLaren Partnership
Aurora Innovation (AUR) stock is in focus after Arrow McLaren IndyCar Team announced a multi year partnership that will put the self driving truck developer’s branding on high profile race assets.
See our latest analysis for Aurora Innovation.
The new Arrow McLaren partnership arrives as Aurora Innovation stock trades at US$6.99, with a 1 month share price return of 15.35% and an 80.62% year to date share price return. The 3 year total shareholder return of 113.11% points to stronger longer term momentum than the 1 year total shareholder return of 9.39%.
If this kind of self driving story has your attention, it may be a good moment to broaden your watchlist with 75 profitable AI stocks that aren't just burning cash
After Aurora Innovation’s sharp run on the Arrow McLaren news, the key choice is whether to accept today’s US$6.99 price or wait in hope of a cheaper reset. How does that trade off look on valuation numbers right now?
Most Popular Aurora Innovation Narrative: 38% Undervalued
Analysts' most followed narrative pegs Aurora Innovation's fair value at $11.22, compared with the latest close at $6.99. That gap sits on some very punchy growth assumptions and a long runway for scaling its self driving freight platform.
Rapid expansion of driverless lanes across the Sun Belt, including the Fort Worth to El Paso and forthcoming Phoenix extension, creates a scalable network effect that can materially lift revenue and load volume density over the next several years.
Want to see what underpins that fair value for Aurora Innovation? The narrative leans on aggressive revenue scaling, a sharp swing in profit margins and a rich future earnings multiple. The exact mix of those inputs matters a lot for how you judge the current $6.99 price.
Result: Fair Value of $11.22 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the Aurora Innovation story can shift quickly if revenue remains stuck at US$5 and losses stay heavy near US$900 million, or if fresh equity funding dilutes shareholders.
Find out about the key risks to this Aurora Innovation narrative.
Next Steps
Sentiment on Aurora Innovation is mixed, with some investors concerned about risks and others focused on potential rewards. Act while this is fresh in mind and weigh both sides using the 2 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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