D-Wave Quantum stock initiated with Overweight rating by Cantor Fitzgerald
Investing.com
Published Jul 02, 2025 07:24AM ET
Investing.com - D-Wave Quantum Inc. (NYSE:QBTS) received an Overweight rating initiation from Cantor Fitzgerald on Wednesday, with a price target of $20.00. The quantum computing company has shown remarkable momentum, delivering a 1,235% return over the past year, with revenue growing 121% year-over-year. According to InvestingPro analysis, the stock appears overvalued at current levels.
Cantor Fitzgerald analyst Troy Jensen highlighted that quantum computing remains "one of the most highly coveted technical milestones with significant economical implications," despite still being in its early stages of development.
The firm acknowledged that full-scale quantum computing capabilities are likely "years away" from realization, yet noted the technology has already generated substantial investor interest.
D-Wave Quantum and other quantum computing stocks have experienced "meaningful appreciation" and currently trade at "steep valuations" based on near-term revenue and earnings forecasts, according to the research note.
Despite these elevated valuations, Cantor Fitzgerald believes D-Wave shares have "room to move higher given the strategic value of quantum computing," supporting its Overweight rating and 12-month price target.
In other recent news, D-Wave Quantum Inc. completed a significant $400 million stock offering, selling shares at an average price of $15.18 per share. This offering, which represents a 149% premium over a previous one, has increased the company's cash balance to approximately $815 million. D-Wave plans to use these funds for strategic acquisitions and other corporate purposes. Additionally, the company raised around $95.8 million from the exercise of warrants, which were part of its merger with DPCM Capital , Inc.
In a strategic move to expand its global presence, D-Wave signed a memorandum of understanding with Yonsei University and Incheon Metropolitan City in South Korea. This agreement aims to advance quantum computing adoption in the region and may lead to the acquisition of a D-Wave Advantage2 quantum system. Benchmark, a financial firm, responded to these developments by raising its price target for D-Wave to $20 from $14, maintaining a Buy rating. Benchmark views the partnership as a significant step for D-Wave's technology validation and market expansion in South Korea.
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