D-Wave Quantum (QBTS) stock soared more than 15% on Wednesday following bullish reviews from analysts at B. Riley Financial and Canaccord Genuity. QBTS stock has rallied by an impressive 142% year-to-date, driven by optimism around quantum computing, the commercial debut of the company’s Advantage2 annealing quantum computer, strategic partnerships, and solid first-quarter results.
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B. Riley Raises Price Target for QBTS Stock
As part of a preview of Q2 earnings of quantum computing stocks, B. Riley Financial analyst Craig Ellis reiterated a Buy rating on D-Wave Quantum stock and increased the price target to $22 from $20. The 5-star analyst believes that investors will focus on management’s commentary on QBTS’ commercial pipeline and updates on the adoption of the Advantage2 system. Ellis explained that his QBTS price target, which previously reflected a 0.8x multiple based on the total addressable market (TAM) over five to fifteen years, now indicates a valuation of 0.9x.
The analyst expects D-Wave Quantum to report revenue of $2.0 million and a loss per share of $0.07 for the second quarter of 2025. Ellis explained that the steep sequential decline in Q2 revenue reflects tough comparison with the first quarter, which included revenue from the sale of an Advantage2 system. He believes that the operating cash burn of $11 million continues to seem manageable, given the $815 million cash position following the $400 million at-the-money offering in June, which will provide more than four years of runway to profitability.
D-Wave is expected to announce its Q2 results in early August. Consensus expectations indicate a loss per share of $0.05 and revenue of $2.55 million.
Additionally, Ellis reiterated a Buy rating on Rigetti Computing (RGTI) stock and raised the price target to $19 from $15. For Rigetti, the analyst stated that investors’ focus will be on qubit module-based scalability to 100+ by the end of this year and partner-funded system-level advances. Ellis also mentioned the progress in error correction, where RGTI has collaborated with UK-based Riverlane. He expects RGTI to report revenue of $1.9 million and a loss per share of $0.06. Wall Street expects the company to report a loss per share of $0.05 and revenue of $1.87 million.
Is QBTS Stock a Good Buy?
On Wednesday, Canaccord Genuity analyst Kingsley Crane initiated coverage on D-Wave Quantum stock with a price target of $20.
Overall, Wall Street has a Strong Buy consensus rating on D-Wave Quantum stock based on eight unanimous Buys. The average QBTS stock price target of $18 indicates a downside risk of 11.3% from current levels.
