Stifel initiates D-Wave Quantum stock with Buy rating on market growth potential

Investing.com - Stifel initiated coverage on D-Wave Quantum Inc. (NYSE:QBTS) with a Buy rating and a $26.00 price target on Monday.

The research firm views D-Wave as a pioneering quantum computing company, noting it was the first to deliver commercial quantum annealing systems since its founding in 1999.

D-Wave currently serves a broad array of commercial customers and sold its first annealing system to Germany’s Julich Supercomputing Centre earlier this year, according to Stifel’s analysis.

The company exited the first quarter of 2025 with $304 million in cash following a recent equity raise, with management indicating the funds are sufficient to reach profitability.

Stifel’s $26 price target is based on a 5x price-to-sales multiple on longer-term revenue assumptions, with the firm projecting D-Wave could capture approximately 15% of the quantum computing market, which is forecast to reach $10 billion by 2030. Investors should note that D-Wave is scheduled to report earnings in 3 days, on August 7, 2025.

In other recent news, D-Wave Quantum Inc. has initiated a strategic development initiative aimed at enhancing its quantum processor packaging. This initiative focuses on advanced cryogenic packaging to accelerate the development of both gate model and annealing quantum processors. In collaboration with NASA’s Jet Propulsion Laboratory, D-Wave is utilizing superconducting bump-bond processes to improve chip interconnectivity. Additionally, the company has seen positive sentiment from analysts, with Benchmark reiterating a Buy rating and maintaining a $20 price target, citing confidence in D-Wave’s technology roadmap. Rosenblatt Securities has also initiated coverage with a Buy rating and a $30 price target, emphasizing D-Wave’s unique position in the quantum computing market. Furthermore, B.Riley has raised its price target for D-Wave Quantum to $22 from $20, maintaining a Buy rating and adjusting its valuation based on the total addressable market. In leadership news, Diane Nguyen has been promoted to Executive Vice President, Chief Legal Officer, and General Counsel, with an updated annual base salary of $381,000.

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