D-Wave Quantum $QBTS ( ▲ 5.71% ) is ripping higher after Evercore ISI launched coverage with an outperform rating and a forty-four dollar price target. The firm called D-Wave a leading play as the computing world pushes into what it describes as the next tectonic shift toward quantum computing.
Analyst Mark Lipacis highlighted three things he thinks set D-Wave apart. It is the first quantum company generating real commercial revenue. It is a full stack outfit with hardware, software, and services. And it has a sizable cash pile to keep building out its tech and potentially scoop up smaller players.
D-Wave’s gate model ambitions are also gaining attention. After its Q3 earnings, CEO Alan Baratz told Sherwood that strengthening the gate model system is a key focus. With roughly eight hundred thirty million dollars in the bank, the company has room to invest and acquire as needed. One customer has already told D-Wave they want the system as soon as it is ready, which broadens the company’s total addressable market and revenue potential.
Quantum investing is still early, and most publicly traded quantum names have limited commercial traction outside of D-WWave. Even so, Evercore believes this is the moment when long term investors should start positioning. Lipacis wrote that past shifts in computing created stock winners that returned one hundred to one thousand times, and that capturing that type of alpha requires getting in about a decade before the shift fully plays out.
Evercore estimates that D-Wave could win twelve percent of a quantum market that BCG predicts will reach fifteen to thirty billion dollars by 2035.