In a report released yesterday, Scott Buck from H.C. Wainwright reiterated a Buy rating on Arqit Quantum (ARQQ – Research Report), with a price target of $52.00.
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Scott Buck has given his Buy rating due to a combination of factors that indicate a promising future for Arqit Quantum. The company’s recent contract announcements, including work with the U.S. Department of Defense and potential collaborations with major IT vendors like Dell Technologies, suggest an increasing validation of its quantum secure encryption technology. These developments are expected to lead to more significant revenue generation in the second half of 2025, marking a shift from the previously slow revenue materialization.
Additionally, Arqit’s engagement with multiple telecom network operators and other enterprises highlights a growing interest and pipeline in its offerings. Despite the company’s shares experiencing a substantial increase recently, Buck sees a meaningful long-term opportunity in Arqit’s stock. The transition from perpetual licensing to a recurring revenue model, coupled with the anticipated growth in the quantum computing sector, positions Arqit well for future success. The company’s current cash position also provides a stable foundation to support its operations as it scales up.