D-Wave Quantum’s Strategic Advancements and Revenue Growth Potential Justify Buy Rating

Benchmark Co. analyst David Williams maintained a Buy rating on D-Wave Quantum (QBTS – Research Report) today and set a price target of $20.00.

David Williams has given his Buy rating due to a combination of factors that highlight D-Wave Quantum’s strategic advancements and potential for revenue growth. The recent memorandum of understanding with South Korea’s Yonsei University and Incheon Metropolitan City is seen as a pivotal move, showcasing D-Wave’s technology on an international platform and setting the stage for future hardware sales. This agreement not only enhances D-Wave’s global presence but also aligns with South Korea’s national quantum initiatives, potentially leading to significant revenue opportunities.
Moreover, the company’s progress in accelerating hardware sales, as evidenced by the recent sale to Julich, indicates a strengthening market interest in quantum computing solutions. This momentum is expected to positively impact D-Wave’s revenue trajectory, providing a buffer against cash burn and supporting long-term growth through QCaaS. The strategic penetration into South Korea’s market and the establishment of a quantum cluster in Incheon further solidify D-Wave’s position as a leader in the quantum computing space, justifying the Buy rating and the increased target price.

Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of QBTS in relation to earlier this year.