TLDR
- Ascendiant analyst Edward Woo raised his price target on QUBT from $22 to $40, representing a 62.5% upside from current levels
- The $40 target is now the highest on Wall Street for Quantum Computing stock
- QUBT shares jumped 23% on October 3 following the analyst upgrade announcement
- The company announced a $750 million common stock offering with institutional investors that was oversubscribed
- Quantum Computing plans to use proceeds for commercialization, acquisitions, production expansion, and new hires
Quantum Computing stock received a major vote of confidence from Wall Street. Ascendiant analyst Edward Woo raised his price target to $40 per share, up from his previous $22 target.
The new target represents a 62.5% gain from current trading levels. It also marks the highest price target on the Street for QUBT stock.
Woo pointed to strong revenue growth as the main driver behind his bullish outlook. He expects this momentum to push shares higher through 2025 and 2026.
The stock responded quickly to the news. QUBT shares surged more than 23% on October 3 after the upgrade was announced.
The celebration was short-lived though. Shares pulled back in pre-market trading the following day after the company made a separate announcement.
Quantum Computing revealed plans to raise $750 million through a common stock offering. The offering involves up to 37.2 million shares and attracted strong interest from institutional investors.
The company said the offering was oversubscribed. Titan Partners Group is serving as the sole placement agent.
Planned Uses for Capital
The company laid out specific plans for the proceeds. Quantum Computing will use the funds to fully support product commercialization efforts.
Strategic acquisitions are also on the table. The company plans to pursue deals that strengthen its market position.
Large-scale production expansion is another priority. The capital will help the company ramp up manufacturing capabilities.
New hires are planned for sales and engineering teams. These additions will support the company’s growth plans.
Working capital and general corporate purposes round out the use of proceeds. The company did not provide more specific details on other potential uses.
Market Position and Growth Outlook
Woo highlighted the company’s early entry into the quantum computing space. This timing gives QCi an advantage in capturing market share as the industry expands.
The analyst urged investors to pay attention to recently launched products. Successful commercialization of these offerings could drive substantial revenue growth starting in 2025.
QUBT has already delivered massive returns. The stock is up more than 3,324% over the past year.
Other quantum computing companies have seen similar gains. D-Wave stock rose 3,306% while Rigetti Computing climbed 5,009% in the same period.
Despite these huge moves, Woo believes there’s still room to run. He expects investor interest in quantum computing to keep growing.
Analyst Consensus
TipRanks shows QUBT stock has a Moderate Buy consensus rating. This rating is based on two Buy recommendations from analysts.
The average price target sits at $32 per share. This figure implies nearly 30% upside potential from current trading levels.
Woo’s $40 target sits well above the consensus. His outlook appears more optimistic than the average Street view.
The sector’s recent performance supports the case for continued enthusiasm. Quantum computing stocks have maintained strong momentum despite their massive gains.
The company’s largest existing shareholders led the $750 million offering announced on October 6.
