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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on IonQ, Inc. (NYSE:IONQ) to $32.00 from $30.00 while maintaining an Equalweight rating on the quantum computing company. The stock has shown remarkable momentum, delivering a 506% return over the past year according to InvestingPro data.
The price target increase reflects multiple expansion within the quantum peer group, with Morgan Stanley now valuing IonQ at 50-80x 2026 price-to-sales ratio, up from its previous range of 50-70x. This valuation comes as the company demonstrates strong revenue growth, with a 69.92% increase in the last twelve months, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
Morgan Stanley cited a "very large long-term opportunity for quantum technology" particularly in areas like simulation and artificial intelligence, while acknowledging that IonQ has made a "compelling case that its technology can accelerate commercial adoption and build leadership."
The firm noted that IonQ’s $13 billion market capitalization appears reasonable given its potential leadership in multiple markets that could become large, though it "doesn’t leave room for much upside until the market inflects."
Morgan Stanley’s bull case for IonQ has been raised to $56 from $50, which would represent an $18 billion market cap and would require the company to establish "a clearer leadership position and quicker commercialization, with revenues that exceed $200mn+ in 2026."
In other recent news, IonQ, Inc. reported its second-quarter earnings for 2025, revealing a revenue of $20.7 million, which exceeded forecasts by 20.99% and surpassed the company’s own guidance by 15%. Despite this revenue beat, IonQ reported a larger-than-expected loss per share of $0.70, compared to the anticipated loss of $0.30. Following these results, Needham reiterated its Buy rating on the company, setting a price target of $60.00 due to the strong revenue performance. Additionally, IonQ raised its full-year 2025 revenue outlook to a range of $82-100 million from the previous guidance of $75-95 million. However, DA Davidson downgraded IonQ from Buy to Neutral, maintaining a price target of $35.00, citing "various moving pieces and limited visibility" as reasons for the downgrade. These developments reflect differing analyst perspectives on IonQ’s future prospects.
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