IonQ Inc. (IONQ) stock rose 4.4% on Wednesday after B. Riley Securities analyst Craig Ellis initiated coverage with a Buy rating and a price target of $61 (43.3% upside potential). The five-star analyst called IonQ the “sector’s revenue growth leader,” noting it is on track for a third consecutive year of over 100% year-over-year gains. Based on this trajectory, Ellis believes that the quantum computing company can exceed $1 billion in revenue by 2030.
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Key Growth Drivers
The analyst noted that IonQ’s growth is being fueled by strong leadership, strategic partnerships, and expanding technical capabilities.
The company’s executive team includes experienced professionals and recent hires from top-tier firms, adding strong industry know-how to its fast-paced growth. On the deal front, IonQ has closed four major deals since December 2024, showing steady progress in forming valuable alliances.
On the technology side, IonQ is scaling its compute, networking, and space capabilities to support the next generation of quantum applications.
Ellis also pointed out that IonQ is financially strong, with $1.6 billion in cash. This gives the company plenty of room to support its growth plans.
Strong Product Pipeline and Market Potential
The analyst also praised IonQ’s product pipeline, which includes the planned launch of a fifth-generation product in the second half of 2025. This new product is a 64-qubit data center system that is expected to enhance the company’s commercial offerings.
Ellis estimates that the total addressable market (TAM) for quantum computing will be between $10 billion and $15 billion in the next five years, and could grow to $28 billion to $86 billion within a decade. He thinks IonQ can capture a major share of this expanding market.
IONQ’s Valuation Seems Attractive
After a 237% stock gain in 2024, IonQ shares are up only 1.56% year-to-date. Also, the stock underperformed the B. Riley Quantum Computing Index, which rose 9%.
Ellis argues that valuation metrics, including price-to-sales and cash-to-market cap ratios, make the stock attractive at current levels.
Is IonQ a Good Buy?
Turning to Wall Street, IONQ has a Moderate Buy consensus rating based on six Buys and three Holds assigned in the last three months. At $49.78, the average IonQ stock price target implies 17.59% upside potential.
