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Investing.com - B.Riley raised its price target on D-Wave Quantum Inc. (NYSE:QBTS) to $22.00 from $20.00 on Wednesday, while maintaining a Buy rating on the quantum computing company’s stock. The company has shown remarkable momentum, with a 191% surge over the past six months and an impressive 1,528% return over the last year, according to InvestingPro data.
The firm increased its valuation multiple from 0.8x to 0.9x of the five to fifteen year total addressable market (TAM), resulting in the 10% price target increase.
B.Riley expects D-Wave to report revenue of $2.0 million and earnings per share of ($0.07) for the current quarter, compared to the consensus estimates of $2.54 million and ($0.08), respectively.
The anticipated steep quarter-over-quarter revenue decline of 86.7% reflects what the firm describes as a tough first-quarter 2025 comparison for Advantage system revenue recognition, while underlying Services and Quantum Computing as a Service (QCaaS) sales are expected to remain more stable.
B.Riley notes that D-Wave’s operating cash burn of $11 million remains manageable with an $815 million cash position following June’s $400 million at-the-market offering, providing more than four years of runway to profitability at what the firm expects will be normalized mid-70s gross margin levels. The company’s strong liquidity position is reflected in its current ratio of 20.7, with liquid assets significantly exceeding short-term obligations. Discover more detailed insights and 12 additional key tips about QBTS on InvestingPro.
In other recent news, D-Wave Quantum Inc. has completed a significant $400 million equity offering, with shares sold at an average price of $15.18 per share. This offering achieved a 149% premium compared to a previous offering in January. Additionally, D-Wave reported raising approximately $95.8 million through the exercise of warrants, with 8.33 million warrants exercised at $11.50 each. On the analyst front, Cantor Fitzgerald initiated an Overweight rating for D-Wave Quantum, setting a price target of $20. Benchmark also raised its price target for the company to $20 from $14, maintaining a Buy rating. The price target increase follows D-Wave’s announcement of a partnership with South Korea’s Yonsei University and Incheon Metropolitan City. This collaboration aims to advance quantum computing adoption in the region, with plans for a D-Wave Advantage2 quantum computing system at Yonsei University’s International Campus. These developments highlight D-Wave Quantum’s ongoing efforts to expand its financial and technological footprint.
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