This analyst just raised his price target on D-Wave Quantum

D-Wave Quantum (D-Wave Quantum Stock Quote, Chart, News, Analysts, Financials NTSE:QBTS) is gaining traction with commercial and AI-focused customers, expanding its revenue potential in both hosted services and hardware, according to a June 13 note from Roth Capital Markets analyst Suji Desilva, who raised the firm’s price target from $12 to $18 and reiterated a “Buy” rating.

“We believe commercial and institutional customers have intensified their quantum computing plans in CY25 and expect QBTS, as a leader in commercial quantum computing deployment, to benefit,” Desilva said. “We also believe that QBTS is garnering increasing interest from the AI community in the opportunity to leverage quantum computing for specific steps that improve overall AI performance. While we are encouraged by D-Wave’s initial Advantage hardware sales to its lead hardware customer, we believe the pipeline discussions regarding future additional hardware sales are also picking up, and hardware ASP can be materially higher than the initial customer sale price that was negotiated. With the recent production launch of the upgraded Advantage 2 system, we believe that these hardware discussions can move relatively faster down the conversion pipeline.”

He said Roth’s $18 price target for QBTS implies a 100x EV/Sales multiple for 2026, well above the 12x average for established compute infrastructure peers. The premium reflects QBTS’s higher expected growth potential.

D-Wave is still in the early stages of growth, but momentum may be building. After a tough 2024 where full-year revenue came in at just $8.8-million and non-GAAP losses totalled $0.30 per share, the company is expected to nearly triple its top line in 2025 to $25.5-million. Losses are forecast to narrow, though it remains unprofitable, with a projected $0.12 per share loss for the year.

By 2026, D-Wave’s revenue is expected to double again to $50-million, with analysts anticipating a near break-even result by the end of that year. A small profit of $0.03 per share is forecast in the fourth quarter, marking a potential turning point.

The company’s strong cash position — $304-million versus just $32-million in debt — gives it breathing room as it scales. Its stock has traded in a wide 52-week range, from $0.75 to $19.77, and has a market cap of over $5.1 billion on more than 308-million shares outstanding. High trading volume suggests active investor interest, as D-Wave moves from a speculative play toward a possible commercial breakthrough.

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