IonQ: Benchmark Raises PT to $75, Maintains Buy Rating

IonQ: Benchmark Raises PT to $75, Maintains Buy Rating

IonQ Inc. (IONQ) shares surged 5.8% to $58.81 on Monday, following a series of upgrades from Wall Street analysts. Benchmark Securities raised its price target to $75 from $61, while Needham Securities increased its target to $80 from $60. These upgrades come on the heels of IonQ's Analyst Day presentation and the completion of its Oxford Ionics acquisition, which has generated significant investor interest.

The stock hit a new all-time high of $59.16 earlier today, extending its three-day winning streak and building on its year-over-year surge of 658.8%. The increased attention from analysts and traders is likely to continue, as the stock's short interest has risen by 27%, with 44.33 million shares sold short, representing 15.5% of its total available float. This could potentially lead to a short squeeze, further boosting the stock price.

Despite the recent rally, long-term sentiment remains bearish, with a 50-day put/call volume ratio of 2.53 that ranks in the highest percentile of annual readings. An unwinding of these bearish bets could push IONQ higher.

Today, the stock saw increased attention in the options pits, with 73,000 calls and 34,000 puts traded, double the usual intraday volume. The most popular contract was the monthly 60-call strike, followed by the 48-put strike.

IonQ's recent performance is a result of its ambitious quantum computing roadmap, which includes plans to develop 2 million physical qubits and 80,000 logical qubits by 2030. The company also received UK regulatory approval for its Oxford Ionics acquisition, clearing the final hurdle for the deal.

The stock's momentum is likely to continue, as analysts remain optimistic about IonQ's commercialization timeline. The recent price target increases reflect growing confidence in the company's ability to execute its roadmap.