Quantum computing firm IonQ Inc. (IONQ) shares have dropped nearly 21% after a Wolfpack Research short-seller report claims the company has lost its funding for vital Pentagon contracts, which provided up to 86% of its revenue from 2022-2024. Rosenblatt Securities analyst John McPeake views this dip as a buying opportunity. After reviewing the 33-page report, he found no substantive new information. Consequently, he believes the weakness in the shares presents a more favorable risk-reward.
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New trading tool for IBM bullsMcPeake maintained his Buy rating and Street-high price target of $100, which implies an impressive 228.6% upside potential from current levels.
What Truly Matters in IonQ’s Story?
McPeake believes that IonQ’s capability to execute effectively on its quantum computing roadmap is what really matters. He expects IONQ shares to drive returns across near, medium, and long-term horizons if the company delivers high-fidelity logical qubits through 2030. IONQ’s trapped-ion approach already offers superior fidelity compared to superconducting alternatives from peers like Rigetti Computing (RGTI) and IBM (IBM).
Key milestones to watch:
- Achieving a 256-physical-qubit system in 2026
- Demonstrating scalable electronic qubit control beyond this level
- Ramping up the engineering supply chain in the UK (for regulatory compliance) and the U.S. (for rapid capital-equipment sourcing)
McPeake noted that success on these timelines would overshadow secondary concerns like Qubitekk developments, booking details, insider selling, and recent acquisitions. Meeting these goals would also position IonQ ahead of competitors, reinforcing its appeal as a buy for patient investors betting on quantum leadership.
Is IONQ a Good Stock to Buy?
Despite the current challenges, analysts remain bullish on IONQ’s long-term prospects. On TipRanks, IonQ has a Strong Buy consensus rating based on nine Buys and three Hold ratings. The average IonQ price target of $78 implies 156.3% upside potential from current levels. Over the past year, IONQ shares have lost 26.3%.
