TLDR
- B. Riley initiated IonQ coverage with Buy rating and $61 price target, suggesting 50% upside potential
- IonQ expanded intellectual property portfolio to over 1,000 patents and applications
- Company maintains $1.6 billion cash balance to fund growth through late-decade profitability
- IonQ could capture 15-40% of quantum computing market by 2035 according to analyst projections
- Stock gained 1.6% following positive analyst coverage initiation
IonQ stock climbed following bullish analyst coverage from B. Riley Securities. Analyst Craig Ellis launched coverage with a Buy rating and $61 price target, representing nearly 50% upside from current levels.
The quantum computing company has strengthened its competitive position through strategic moves. IonQ recently scaled its patent portfolio to include more than 1,000 licensed, owned, or controlled patents and applications.
Ellis highlighted the company’s rapid expansion across compute, networking, and space capabilities. IonQ has closed four deals since December 2024, with another transaction pending.
CEO Niccolo de Masi took leadership in February after serving on the company’s board. The executive team added industry veteran Marco Pistoia from JPMorgan and IBM to oversee industry relations.
Strong Financial Foundation Supports Growth Plans
IonQ maintains a robust $1.6 billion pro forma cash balance representing 12% of market capitalization. This financial strength positions the company to fund operations through late-decade profitability targets.
The company generates revenue through two primary channels. Consulting and support services account for nearly 40% of total revenue. The remaining portion comes from quantum computing as a service offerings.
Ellis views IonQ’s quantum computing cloud services as ideal for building developer ecosystems and encouraging commercial adoption. The business model mirrors pure-play competitor Rigetti Computing.
Market Position and Competition Analysis
The analyst projects IonQ could capture between 15% and 40% of the quantum computing market by 2035. The company competes against established players including IBM and Google.
Pure-play competitors Rigetti Computing and D-Wave Quantum have posted quadruple-digit gains over the past year. The quantum computing sector has attracted intense investor interest.
Rigetti recently announced collaborations with Montana State University and received a $5.8 million Air Force contract. Both IonQ and Rigetti participate in Defense Advanced Research Projects Agency quantum computing initiatives.
Of 10 analysts covering IonQ stock, six rate it Buy while two each rate it Hold and Sell. The company trades with a $12.1 billion market capitalization and year-to-date performance of -3.90%.
