Tuesday - Benchmark has raised the price target on D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE:QBTS) to $4.00 from the previous $2.00, while maintaining a Buy rating on the stock. This adjustment follows D-Wave's fourth-quarter results, which showcased significant progress with their Advantage 2 prototype system in the field of quantum annealing.
The company's latest quantum annealing developments have shown promise in solving complex problems that classical systems cannot handle. The new prototype has received positive feedback from customers, with over 100,000 problems submitted within the first four weeks of its release. The Advantage 2 system outperforms its predecessor with a 40% increase in energy scale, improved qubit connectivity, and a doubling of coherence time.
D-Wave's business growth is evident with an increase in bookings and commercial customers on a quarter-over-quarter and year-over-year basis. The company is also seeing a number of new applications move from the proof of concept stage to production deployment, which is expected to contribute to a more predictable and sustainable revenue stream as Quantum Computing as a Service (QCaaS) starts to take hold.
The analyst's outlook is buoyed by the company's current portfolio of 78 commercial customers and the deployment of multiple quantum applications in customer production environments. This momentum is seen as indicative of a wider adoption and value creation in the quantum computing industry, suggesting that the sector may be approaching a tipping point.
InvestingPro Insights
As D-Wave Quantum Inc. (NYSE:QBTS) continues to make strides in the quantum computing industry, it's important for investors to consider both the potential and the challenges the company faces. With a market capitalization of $321.75 million and a significant revenue growth of 22.1% over the last twelve months as of Q4 2023, the company's progress is tangible. However, it's noteworthy that the company is not yet profitable, with a negative P/E ratio of -3.91, reflecting the high costs associated with pioneering in this cutting-edge technology sector.
InvestingPro Tips highlight a mix of optimism and caution: Analysts have revised their earnings upwards for the upcoming period, indicating confidence in D-Wave's future performance, yet they do not anticipate the company will be profitable this year. Furthermore, the company's stock has experienced strong returns over the last month, three months, and six months, showcasing investor enthusiasm.
For investors looking for a deeper dive into D-Wave Quantum Inc.'s financials and future prospects, InvestingPro offers additional insights. By using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable resources for making informed decisions. There are currently 14 additional InvestingPro Tips available for D-Wave Quantum Inc., which can be accessed at: https://www.investing.com/pro/QBTS
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.