B. Riley Cut Its D-Wave Target to $27. It’s Still 168% Above the Stock Price
B. Riley reduced its price target for D-Wave Quantum (QBTS) to $27 from $40, maintaining a Buy rating. The stock fell 5% to $10.09. D-Wave's Q2 revenue was flat at $3.1M, while operating expenses rose 93%. Analysts expect revenue growth in 2027, but the company faces delivery delays and a securities class action.
How this was made
The 30-second read
Why it matters
The price‑target cut underscores concerns over cash burn and reliance on limited future shipments, likely prompting short‑term sell pressure.
Market read
Target reduction and modest price decline suggest near‑term downside risk for QBTS, with limited spillover to the broader market.
What to watch
Potential upside from two Q4 system deliveries could narrow the valuation gap if realized.
Background
D‑Wave Quantum reported flat Q2 revenue of $3.1 M and a 93% rise in operating expenses, while analysts expect most 2026 revenue from two Q4 system deliveries.
Ticker impact
B. Riley lowered its price target for D‑Wave Quantum to $27 from $40, causing the stock to fall 5% on Nov 2.
downward pressure as investors price in the lower valuation and high expense growth.
A 168% premium to current price still implies a large valuation gap; the cut reduces that gap but the stock remains far above price, suggesting continued skepticism.
Market effects
Highlights valuation challenges for quantum‑computing niche stocks with high cash burn.
Limited to U.S. small‑cap investors; no broader regional effect.
Minimal; primarily a micro‑cap specific event.
Counterpoint
The 168% premium may attract speculative buyers betting on breakthrough system deliveries later in the year.
Key entities
- analystB. Riley
Equity research firm that lowered the price target.
- companyD‑Wave Quantum
Quantum‑computing hardware provider (ticker QBTS).
