D-Wave Quantum (QBTS) and IonQ (IONQ) stocks rallied by about 8% and 11.6%, respectively, on Wednesday, as Cantor Fitzgerald assigned a Buy rating, expressing confidence in the growth potential of these quantum computing stocks. These stocks also benefited from a rally in the broader market, driven by the U.S.-Vietnam trade deal.
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QBTS Stock Earns Another Buy Rating
Cantor Fitzgerald initiated coverage of quantum computing stocks QBTS, IONQ, and Rigetti Computing (RGTI) with a Buy rating. Analyst Troy Jensen believes that while quantum computing is in its infancy, it is one of the most “highly coveted technical milestones,” with significant economic benefits. The 4-star analyst added that while we are several years away from full-scale quantum capabilities, the technology has already garnered investors’ attention, with quantum computing stocks witnessing a significant rise and trading at steep valuations based on any near-term revenue or earnings forecast.
D-Wave Quantum claims to be the world’s first commercial supplier of quantum computers, and the only company building both annealing and gate-model quantum computers. Jensen has a price target of $20 on D-Wave Quantum stock, indicating 25% upside potential. The analyst noted that companies are utilizing D-Wave Quantum’s annealing technology in optimization problems, such as scheduling and logistics routing, and achieving productivity improvements. Jensen also noted that D-Wave has demonstrated quantum computational supremacy on real-world problems.
Is QBTS a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on D-Wave Quantum stock based on seven unanimous Buys. At $17.33, the average QBTS stock price target indicates an upside potential of 8.5% from current levels. QBTS stock has jumped by a stellar 1,340% over the past year.
Cantor Fitzgerald Is Bullish on IONQ Stock
Meanwhile, Jensen assigned a $45 price target to IONQ stock and believes that the company can capture 20% of the quantum hardware, software, and services market by 2035, or nearly $636 million in present value terms. Recently, IONQ was in the news as the Texas legislature passed a bill, backed by the company, that would enable the state to be a major hub for quantum technology.
Is IONQ a Good Stock to Buy?
With five Buys and one Hold, IONQ stock scores a Strong Buy consensus rating on TipRanks. The average IONQ stock price target of $43.33 indicates a possible downside of 3.2% from current levels. IONQ stock has rallied by 527% over the past year.
