D-Wave Quantum price target raised to $20 from $14 at Benchmark

Benchmark raised its price target on D-Wave Quantum Inc. (NYSE:QBTS) stock to $20.00 from $14.00 on Wednesday, while maintaining its Buy rating on the quantum computing company. The stock, currently trading at $15.55, has delivered an exceptional return of over 1,200% in the past year, according to InvestingPro data.

The price target increase follows D-Wave’s announcement of a memorandum of understanding with South Korea’s Yonsei University and Incheon Metropolitan City aimed at accelerating quantum computing adoption in the region. The company, now valued at $4.91 billion, has shown impressive revenue growth of 121% in the last twelve months.

Benchmark views this agreement as a significant strategic step that validates D-Wave’s technology globally and establishes a framework for the future sale and installation of an Advantage 2 quantum system in South Korea.

While the memorandum is nonbinding, it explicitly states the parties will work toward the acquisition of a quantum system, which could represent a potential double-digit million-dollar revenue opportunity for D-Wave. With an industry-leading gross profit margin of 83%, according to InvestingPro’s detailed analysis (available in the Pro Research Report), the company appears well-positioned to capitalize on such opportunities.

The agreement also positions D-Wave to anchor its ecosystem strategy in South Korea, which Benchmark describes as a "key, tech-forward market" for the quantum computing company.

In other recent news, D-Wave Quantum Inc. has announced the general availability of its Advantage2 Quantum Computer, marking a significant milestone in the quantum computing industry. The new system is designed to tackle complex computational challenges, with enhancements in qubit connectivity, energy efficiency, and processing power. This development coincides with B.Riley maintaining its Buy rating for D-Wave Quantum with a price target of $13.00, reflecting confidence in the company’s technological advancements. Additionally, D-Wave Quantum has secured approximately $95.8 million through the exercise of warrants, as disclosed in a recent SEC filing. This financial influx is part of the company’s strategy following its merger with DPCM Capital , Inc. Moreover, D-Wave has entered into a memorandum of understanding with Yonsei University and Incheon Metropolitan City to foster quantum computing adoption in South Korea. This partnership aims to develop applications in biotechnology and materials science, furthering D-Wave’s mission to expand quantum computing infrastructure globally. The collaboration with Yonsei University is set to include the installation of a D-Wave Advantage2 system at the university’s International Campus in Incheon. These developments underscore D-Wave Quantum’s ongoing efforts to enhance its financial standing and expand its technological reach.

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