D-Wave: “Most significant quarter” – new price targets for quantum stock

Photo: D Wave

THE SHAREHOLDER Quantum Computing Index - %

Following yesterday's price explosion, D-Wave Quantum remains relatively stable today after temporary losses and is able to maintain its current level – even though the price fluctuates significantly. The latest price targets from analysts should have a stabilizing effect, as they underscore that yesterday's price reaction certainly has a fundamental basis.

Following the presentation of the Q1 results, D-Wave shares soared. The reason: For the first time, a complete Advantage quantum computer system was sold to a European research center—the renowned Jülich Supercomputing Centre in Germany. D-Wave CEO Alan Baratz called it "perhaps the most significant quarter in D-Wave's history."

The quarter ended March 31 saw revenue jump to $15 million, a more than sixfold increase over the previous year. Investors responded enthusiastically.

Analysts cheer

Needham analyst Quinn Bolton raised the price target from $8.50 to $13, citing "significantly increased commercial momentum." D-Wave focuses on applicable, practical solutions, such as energy optimization for blockchain applications. Bolton also emphasized that the new Advantage2 system has now been installed at the Davidson, Alabama, site. Furthermore, D-Wave is actively seeking a commercial partner for the quantum blockchain space.

B. Riley (new price target: $13) and Roth Capital ($12) also praise the broadening revenue base. Particularly strong is the new third revenue pillar in hardware sales alongside cloud services and consulting. With $304 million in cash, B. Riley sees the company as financially sound for the coming quarters.

It looks as if D-Wave might actually be able to bring its quantum promise to market. Of course, the stock remains highly speculative. D-Wave is posting losses, and investors face dilution through further financing rounds. Investors looking to diversify their risk can look at the AKTIONÄR Quantum Computing Index, which, in addition to D-Wave, lists 14 other companies benefiting from the potential of quantum computing technology. The index certificate with the WKN DA0AC8 replicates the development virtually one-to-one.

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