Why Stifel says buy this quantum computing stock

Investing.com -- Stifel initiated coverage of D-Wave Quantum Inc. (NASDAQ: QBTS) with a Buy rating and a $26 target price in a note this week, citing the company’s leadership in quantum annealing and growing commercial traction.

“We view QBTS as a pioneering quantum computing company and the first to deliver commercial quantum annealing systems,” Stifel wrote.

Founded in 1999, D-Wave has built a broad customer base and achieved a key milestone earlier this year by selling its first quantum annealing system to the Julich Supercomputing Centre in Germany.

Stifel sees this as an indication of strong commercial viability.

Following a recent equity raise, D-Wave exited the first quarter of 2025 with $304 million in cash.

According to Stifel, management has indicated that “the company is funded sufficiently to reach profitability.”

Looking ahead, Stifel is optimistic about industry growth. “Using various industry forecasts, we believe that the quantum computing market is on track to grow into a $10 billion market by 2030,” the analysts wrote.

With a base case assumption of 15% market share for D-Wave, they derive a $26 price target based on a 5x price-to-sales multiple on longer-term revenue assumptions.

Stifel’s bullish stance is underpinned by D-Wave’s commercial momentum, strong cash position, and differentiated technology.

The firm believes the company is well-positioned to capture a significant portion of what it views as a rapidly expanding market.

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