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Investing.com - Rosenblatt Securities initiated coverage on D-Wave Quantum Inc. (NYSE:QBTS) with a Buy rating and a $30.00 price target on Tuesday. The quantum computing company, currently valued at $5.8 billion, has demonstrated impressive growth with revenue surging 121% in the last twelve months and maintaining strong gross margins of 83%.
The research firm cited D-Wave’s differentiated position in the quantum computing market, particularly highlighting its focus on quantum annealing technology, which Rosenblatt believes offers advantages over both classical computing and gate-based quantum systems for optimization workloads. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and strong liquidity ratios.
Rosenblatt projects D-Wave will capture significant market share in the quantum annealing sector, forecasting revenue growth at a 66% compound annual growth rate from 2025 to 2030.
The firm’s $30 price target represents a 68.4x enterprise value to sales multiple based on 2030 revenue estimates discounted back to present value.
Rosenblatt identified several potential catalysts for D-Wave’s stock appreciation, including continued demonstration of quantum supremacy, expansion of its commercial customer base, and successful execution of the company’s dual-track product roadmap.
In other recent news, D-Wave Quantum Inc. has completed a significant $400 million stock offering at an average price of $15.18 per share. This offering marks a 149% premium compared to a previous $150 million offering completed in January. Additionally, D-Wave Quantum has entered into a memorandum of understanding with Yonsei University and Incheon Metropolitan City to foster quantum computing adoption in South Korea. This partnership includes plans for collaborative research and aims to install a D-Wave Advantage2 quantum computing system at Yonsei University’s International Campus.
On the analyst front, B.Riley has raised its price target for D-Wave Quantum to $22, maintaining a Buy rating, citing an increase in the valuation multiple. Similarly, Benchmark has increased its price target from $14 to $20, also maintaining a Buy rating. Cantor Fitzgerald initiated coverage of D-Wave Quantum with an Overweight rating and set a price target of $20, noting the significant economic implications of quantum computing. These developments highlight the growing interest and investment in D-Wave Quantum’s advancements in the quantum computing sector.
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