Quantum Computing Inc. (NASDAQ:QUBT) shares are trading higher on Thursday after Rosenblatt analyst John McPeake initiated coverage with a Buy rating and announced a price target of $22.
- Quantum Computing shares are rising. What’s next for QUBT stock?
Analyst Sees Favorable Risk-Reward Profile
The initiation is based on the firm’s view that Quantum Computing has a favorable risk-reward profile supported by its quantum and opto-electronics assets, strong balance sheet and growing fabrication capabilities.
Rosenblatt highlighted that the company holds assets across photonics, compute, security and sensing, as well as thin-film lithium niobate (TFLN) fabrication facilities. The analyst noted that Quantum Computing has approximately $1.6 billion in cash and no debt, with interest income currently exceeding operating expenses. The company has “a lot of ways to win and plenty of cash to get there,” the analyst added.
The firm also pointed to Quantum Computing’s planned acquisition of Luminar’s LSI fabrication assets, which Rosenblatt said could add roughly $25 million in annual revenue and improve the company’s financial profile. Rosenblatt estimates Quantum Computing generated approximately $400,000 in revenue in 2024 and expects revenue of about $1.2 million in 2025 prior to the impact of the acquisition.
Rosenblatt said the company is currently shipping products, including optimization software, a quantum random number generator, photonic reservoir computing tools and lab and research offerings. The firm also highlighted the completion of the company’s first TFLN fabrication facility in the second quarter of 2025, which is expected to support internal product development and lower-volume customers.
The analyst noted that a second, higher-volume TFLN fabrication facility could significantly expand production capacity and revenue potential over time.
Rosenblatt set its $22 price target based on a valuation framework tied to long-term revenue and earnings assumptions, discounted to reflect the company’s early-stage revenue profile.
The Technical Picture
The stock is currently trading 12.8% above its 20-day simple moving average (SMA) but is 13.8% below its 100-day SMA, demonstrating a mixed technical picture. Over the past 12 months, shares have increased by 10.82%, and the stock is positioned closer to its 52-week lows than highs, suggesting some caution among traders.
The RSI is at 55.07, which is considered neutral territory, indicating that the stock is neither overbought nor oversold at this time. Meanwhile, the MACD is above its signal line, suggesting bullish momentum is present.
The combination of a neutral RSI and a bullish MACD suggests mixed momentum for the stock. Traders should watch key levels as they could indicate future price action.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Quantum Computing, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 13.16/100) — The stock is currently underperforming the broader market.
The Verdict: Quantum Computing’s Benzinga Edge signal reveals a stock that is struggling with momentum, as indicated by its low score. Investors should be cautious, as the stock’s current positioning suggests it may face challenges in gaining traction.
QUBT Price Action: At the time of writing, Quantum Computing shares are trading 2.01% higher at $12.76, according to data from Benzinga Pro.
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