IonQ stock initiated with Buy rating at B.Riley on quantum computing growth

Published 27/08/2025, 06:22
IonQ stock initiated with Buy rating at B.Riley on quantum computing growth

Investing.com - IonQ, Inc. (NYSE:IONQ), now commanding a market capitalization of $12.1 billion, received a Buy rating initiation from B.Riley on Wednesday, with analyst Craig Ellis setting a price target of $61.00. According to InvestingPro data, analyst targets for the stock range from $32 to $70.

The quantum computing company is leading its sector in revenue growth, tracking for a third consecutive year of approximately 100% year-over-year gains, which could potentially continue through 2028 toward $1.0 billion in 2030 estimated sales and AEBITDA profitability. InvestingPro analysis indicates the company achieved 68% revenue growth in the last twelve months, though it currently trades above its Fair Value.

IonQ has completed four deals since December 2024, with another pending, while also expanding its compute, networking, and space capabilities under its experienced executive leadership team that continues to attract senior talent from blue-chip companies.

The company maintains a strong financial position with a $1.6 billion pro forma cash balance representing 12% of its market capitalization, which B.Riley believes adequately positions IonQ to fund its path to profitability later this decade.

Despite gaining 237% in 2024, IonQ shares have declined 2.4% year-to-date in 2025, underperforming the B. Riley Securities Quantum Computing Index, while the company prepares to launch its fifth-generation product in the second half of 2025 with potential to capture significant share of what B.Riley estimates as a $10-15 billion five-year TAM and $28-86 billion ten-year TAM. With a beta of 2.54, investors should note the stock’s high volatility relative to the market.

In other recent news, IonQ reported its second-quarter 2025 revenue, surpassing market expectations. The company also raised its full-year 2025 revenue outlook to $82-100 million, up from the previous guidance of $75-95 million. Needham reiterated a Buy rating on IonQ with a $60.00 price target, citing strong revenue performance. Morgan Stanley also adjusted its price target for IonQ, increasing it from $30.00 to $32.00, while maintaining an Equalweight rating.

In addition to financial updates, IonQ expanded its intellectual property portfolio to over 1,000 patents and patent applications, emphasizing advancements in trapped-ion quantum computing technology. The company also announced the appointment of four new vice presidents to bolster its leadership team across various divisions. Furthermore, IonQ’s board approved equity awards and a salary adjustment for its top executives, including a new restricted stock unit grant for CEO Niccolo de Masi, alongside an increase in his annual base salary to $700,000. These developments highlight IonQ’s ongoing efforts to strengthen its market position and leadership team.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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