Benchmark analyst David Williams has reiterated a Buy rating on D-Wave Quantum (QBTS) stock with a $20 price target (17.7% upside). The move came after a recent conference with CEO Alan Baratz and CFO John Markovich. The five-star analyst came away more confident in D-Wave’s tech roadmap and sales strategy, which are driving adoption of its quantum technology. QBTS stock soared about 4.5% on Monday’s regular trading session.
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Key Reasons for Bullish Rating
The analyst noted that D-Wave’s annealing-based quantum systems are gaining traction in commercial workflows, delivering real business value in areas like logistics, drug discovery, and AI model training.
Also, he believes that investors have better visibility into how QBTS plans to make money from its technology, including hardware sales and cloud-based quantum services.
Further, the Top analyst is impressed with D-Wave’s strong financial position. He noted that the company currently has $800 million in cash, almost three times what it needs to fully fund its plans. He said the recent fundraising lowered the risk of shareholder dilution and gave QBTS flexibility to grow.
Road Ahead for QBTS
D-Wave’s quantum annealing offerings are being widely used in real-world applications. In AI and machine learning, the company has launched tools that enable faster and more energy-efficient training of AI models.
In the pharma sector, Japan Tobacco’s (JAPAF) pharma division is working with D-Wave to accelerate drug discovery. Also, scientific institutions like Germany’s Jülich Supercomputing Centre are using D-Wave’s systems to predict protein-DNA binding with greater accuracy.
On the tech side, QBTS is focused on scaling performance. Its Advantage2 system features between 1,200 and 4,400 qubits, 20-way connectivity, and a 40% higher energy scale for greater precision. Also, it is expanding Leap cloud platform and hybrid solvers to aid quantum-enhanced AI workloads.
Is QBTS Stock a Good Buy?
Turning to Wall Street, D-Wave Quantum stock has a Strong Buy consensus rating based on nine Buys assigned in the last three months. At $20.38, the average QBTS stock price target implies an 18.97% upside potential.
