IonQ (NYSE:IONQ) was in the spotlight on Wednesday as investment firm B. Riley initiated coverage on the quantum computing company, saying it sees “compelling” long-term growth potential.
Shares were modestly higher in premarket trading.
Noting that IonQ is the quantum computing sector’s revenue growth leader, tracking for a third year of roughly 100% year-over-year, the company appears poised to surpass $1B in revenue by 2030, analyst Craig Ellis said in a note to clients. Ellis initiated coverage on IonQ with a Buy rating and $61 price target.
“A $1.6B pro forma cash balance is 12% of market cap, and IONQ looks robustly positioned to fund a path to late-decade profitability,” Ellis added. “The product pipeline is progressing, with a fifth-gen product launching in 2H25, with our view of five-and ten-year [total addressable market] sizing near $10B to $15B and $28B to $86B, respectively, where we believe IONQ can gain material share.”
Other positives that IonQ has going for it include an “experienced” leadership team, with “significant, large blue-chip company managerial talent;” a patent-rich tech portfolio; products that are executing well into commercially advantaged releases (such as its fifth-gen 64-qubit data center systems); the aforementioned cash balance; and the fact that estimates out to 2028 seem conservative.