Quantum Computing (QUBT) shares rose sharply on Monday after analysts reiterated bullish views on the company, pointing to upcoming product launches, growing commercial adoption, and long-term opportunities in quantum software and hardware.
The stock gained 13.65% to $11.28, benefiting from a broader market rally and renewed investor interest in quantum-computing companies.
Despite the move higher, Quantum Computing shares have declined 53% over the past 12 months, underperforming several peers in the sector.
Over the same period, Rigetti Computing, IonQ, and D-Wave Quantum have posted gains of 73%, 51%, and 46%, respectively.
The company’s unconventional history has also drawn attention.
Quantum Computing began as an inkjet-cartridge seller before transitioning into beverage distribution and eventually evolving into a company focused on quantum optics and photonic computing technologies.
Analysts maintain bullish outlook
Recent analyst commentary has helped improve sentiment around the stock.
John McPeake of Rosenblatt Securities reiterated a Buy rating on June 10 and maintained a $22 price target, implying substantial upside from current levels.
Edward Woo of Ascendiant Capital Markets also reiterated a Buy rating while increasing his price target to $30 from $27.
Woo said Wall Street’s revenue expectations for the company appear achievable.
Based on conversations with management, he believes consensus estimates calling for full-year revenue of $20 million to $25 million are reasonable.
Revenue growth has been supported in part by Quantum Computing’s acquisition of Luminar Semiconductor.
The all-cash $100 million transaction closed in February and contributed $3.7 million in revenue during the company’s most recent quarter.
Woo also highlighted the potential of the company’s Qatalyst software platform.
“As quantum computing hardware continues to advance, we expect a corresponding growth in demand for quantum software to run on these computers,” Woo wrote.
Qatalyst is designed to allow developers to solve computational problems without requiring expertise in low-level quantum programming languages, potentially broadening access to quantum computing applications.
New hardware launches remain in focus
Analysts also see upcoming hardware developments as potential catalysts for the stock.
McPeake said there are “catalysts likely ahead” as Quantum Computing prepares to launch a more powerful version of its Dirac 3 system, while a separate next-generation hardware platform is also under development.
Dirac serves as the company’s flagship quantum-computing platform and was first released through cloud access in 2022.
The company has also secured government-related work.
In 2024, Quantum Computing won a contract from NASA to enhance satellite radar imagery using a third-generation version of the Dirac system.
The upcoming hardware launches are expected to play an important role in expanding the company’s capabilities and market reach as competition in the quantum-computing sector intensifies.
Commercial adoption and miniaturization strategy
Beyond research and government applications, Quantum Computing has reported signs of growing commercial traction.
According to McPeake, the company sold a $332,000 quantum system to an unnamed large financial institution last year.
It also conducted a live cybersecurity demonstration at a conference in March.
The analyst expects revenue from quantum networking and cybersecurity applications to increase over time.
However, McPeake believes the company’s larger long-term opportunity lies in product miniaturization.
“Management sees a broader market” once the company condenses its bulky, rack-mounted systems into smaller chips in a few years, he wrote.
The ability to reduce the size of its hardware could significantly expand the range of commercial applications for Quantum Computing’s technology and potentially open new markets beyond its current customer base.
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