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Rosenblatt began coverage of quantum computing companies IonQ (NYSE:IONQ) and D-Wave Quantum (NYSE:QBTS) with Buy ratings.
Shares of D-Wave jumped about 3% premarket on Tuesday, while IonQ rose about 1%.
IonQ
Analysts led by Kevin Garrigan said they have started coverage of IonQ with a Buy rating and a $70 12-month price target. The analysts believe IonQ provides an attractive way to gain exposure to the quantum computing market, a market that they see as the next era of computing.
“It is our view that the quantum computing market is setup to be a multiple winner market and not a winner takes all market. We have a high level of confidence that IonQ is well positioned to take its place among the winners, and unlike some early stage competitors, IonQ will be exiting 2025 with annualized revenues in excess of $100M, nearly doubling in 2026, and could well be on track for $1B in revenue over the next few years,” said the analysts.
The analysts believe executing on the product roadmap, developing a quantum ecosystem to capture value in the nascent quantum networking, and increasing partnerships/system sales will drive stock price appreciation.
D-Wave Quantum
Garrigan and his team began coverage of D-Wave with a Buy rating and a 12-month price target of $30.
The analysts believe D-Wave offers a differentiated way to gain exposure to the rapidly growing quantum computing market. The analysts said that quantum annealing, a subsector of quantum computing, offers advantages over both classical computing and gate-based quantum systems for optimization workloads.
Quantum annealing and quantum gates are two different approaches to quantum computation.
“We have a high level of confidence that D-Wave will capture significant market share in the quantum annealing market leading to D-Wave revenues growing at a +66% CAGR from 2025-2030,” said the analysts.
Garrigan and his team believe continued show of quantum supremacy, growing the commercial customer base, and executing on the dual-track product road map will drive stock price appreciation in the long-term.