Lake Street Initiates Buy Rating on Quantum Computing Stock with $24 Price Target

Lake Street analyst Max Michaelis initiated a "Buy" rating on Quantum Computing Inc. (NASDAQ:QUBT) with a price target of $24. The analyst cites the company's first-mover advantage in photonics and Thin Film Lithium Niobate technology, as well as its US-based foundry and diverse approach to photonic chips and quantum computing solutions.

Lake Street analyst Max Michaelis has initiated a "Buy" rating on Quantum Computing Inc. (NASDAQ:QUBT) with a price target of $24. The analyst highlights the company's first-mover advantage in photonics and Thin Film Lithium Niobate technology, as well as its U.S.-based foundry and diverse approach to photonic chips and quantum computing solutions.

Quantum Computing Inc. (QUBT) has been expanding its commercial and government engagement, participating in numerous trade shows and conferences to showcase its quantum optimization and photonic chip solutions. This has led to early sales of products such as the Quantum Photonic Vibrometer, entangled photon sources, and EmuCore reservoir computing system to research institutions, businesses, and government agencies. These early sales indicate a genuine demand for QUBT's technology, positioning it for larger markets such as secure communications, edge AI, and advanced sensing.

The company's new chip foundry in Tempe, Arizona, is expected to contribute significantly to its revenue growth. The facility is already fulfilling pre-orders, with management expecting it to start making a meaningful financial contribution within 12-18 months. Additionally, QUBT is strengthening its ties with government partners such as NASA and NIST, which boosts its credibility.

QUBT exited Q2 with $349 million in cash and equivalents, driven largely by $188 million in net proceeds from a private placement of common stock. The strong balance sheet and increased visibility with its addition in the Russell 3000 and Russell 2000 indexes provide a solid foundation for the company's future growth.

Rigetti Computing (RGTI), a peer of QUBT, is also strengthening its role in quantum computing through strategic initiatives, international expansion, and financial resilience. Rigetti signed an MOU with India's Centre for Development of Advanced Computing (C-DAC) and launched Cepheus-1-36Q, a four-chiplet system that halved error rates versus its prior design and achieved 99.5% two-qubit gate fidelity.

D-Wave Quantum (QBTS) has both the technical momentum and financial capacity to execute opportunistically, reinforcing its ambition to be the first independent quantum company to reach profitability. In Q2, D-Wave launched Advantage2, its most advanced annealing quantum computer, and announced a partnership with Yonsei University and Incheon Metropolitan City to advance quantum computing in South Korea.