DA Davidson downgrades IonQ stock rating to Neutral on limited visibility

Published 07/08/2025, 11:58
DA Davidson downgrades IonQ stock rating to Neutral on limited visibility

Investing.com - DA Davidson downgraded IonQ, Inc. (NYSE:IONQ) from Buy to Neutral on Thursday, while maintaining its $35.00 price target for the quantum computing company. The stock, currently trading at $41.23, has delivered an impressive 506% return over the past year, according to InvestingPro data.

The research firm cited "various moving pieces and limited visibility" as key factors behind its decision to move to the sidelines on the stock. InvestingPro analysis shows the company’s significant revenue growth of nearly 70% in the last twelve months, though it remains unprofitable with negative EBITDA of $234.4 million.

DA Davidson noted that IonQ continues to make substantial investments in what it considers "the next big technological paradigm of this generation."

Despite recognizing the company’s long-term potential, the firm expressed concern about increased business risks associated with IonQ’s operations.

These risks specifically include "limited clarity relating to roadmap and near-to-medium term profitability," according to the research note accompanying the downgrade.

In other recent news, IONQ Inc. reported its second-quarter earnings for 2025, showcasing a notable revenue performance. The company achieved a revenue of $20.7 million, surpassing forecasts by 20.99% and exceeding its own guidance by 15%. Despite this, IONQ experienced a larger-than-expected loss per share, reporting an EPS loss of $0.70, which was more than double the anticipated loss of $0.30. These earnings results are significant developments for the company. The revenue beat indicates stronger-than-expected sales, while the larger loss per share suggests higher costs or other financial challenges. There were no updates on mergers or acquisitions in the recent reports. Additionally, there were no specific analyst upgrades or downgrades mentioned for IONQ in the latest updates. These recent developments provide important insights for investors and analysts monitoring IONQ’s performance.

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