Wedbush Securities initiated coverage on quantum computing stocks on Wednesday, putting Outperform ratings on IonQ (IONQ), Rigetti (RGTI) and D-Wave Quantum (QBTS) and a Neutral rating on Quantum Computing (QUBT).
“Quantum computing remains in its nascent stages, but we view it as a transformational technology with significant long-term potential which we believe will ultimately represent the next frontier of computing,” analysts at the firm wrote in a note to clients. “We expect that by the end of the decade, quantum computing companies will represent a larger share of the total spend on compute from what is a very small base today. Specifically, we project quantum computing spend on the four covered companies could reach just under 2% of total compute expenditures by 2030, from virtually nothing today, as the technology moves from research to commercial applications. The combination of significant [total addressable market] growth, real-world benefits from optimization, and potential energy efficiencies make quantum a generational investment theme.”
The respective price targets are $60 for IonQ, $35 for Rigetti, $35 for D-Wave Quantum and $12 for Quantum Computing.
IonQ, Rigetti, D-Wave Quantum and Quantum Computing were all higher in premarket trading.
