D-Wave (NYSE:QBTS) felt like it might peak? Well, it just added another 7.8% on July 3and top analysts at Roth MKM and Cantor Fitzgerald aren’t hitting the brakes anytime soon.
After a dizzying 1,352% climb over the past year, QBTS closed Wednesday at $15.98. Roth MKM’s Sujeeva De Silva stuck with his Buy call and nudged the target up to $18, while Cantor Fitzgerald jumped in with an Overweight rating and a $20 price tag.
Their pitch? Real-world wins in logistics and scheduling problems, plus that high-profile demo of quantum supremacy, are showing customers D-Wave’s tech can actually move the needle.
Q1 was no slouch, either: revenue shot up 509% to $15 million thanks to Advantage2 system sales, losses shrank from $17.3 million to $5.4 million year-over-year, and gross margins rocketed to 93.6%.
With $304 million in cash on hand and fresh dealsfrom Ford Otosan in autos to Japan Tobacco in manufacturingD-Wave’s turning breakthroughs into dollars.
Unlike Google (NASDAQ:GOOG) or IBM (NYSE:IBM), D-Wave bets on quantum annealinga niche that speaks directly to companies wrestling with tough optimization tasks. That focus, combined with serious analyst backing and strong numbers, could keep QBTS’s rocket fuel burning.
Two heavyweight firms are backing D-Wave, and the Q1 results give them ammo. If D-Wave can keep translating its tech chops into steady revenue, this quantum stock might just have another leg up.
This article first appeared on GuruFocus.
