92% Upside for D-Wave Quantum? B. Riley Still Thinks So, and Here’s How
B. Riley reduced its price target for D-Wave Quantum (QBTS) to $22 from $27, maintaining a Buy rating. The firm cited three consecutive quarters of revenue misses and legal claims of overstated growth. D-Wave's stock has fallen 62% in the past year, and its current valuation is 126x forward sales, below its 3-year average of 152x.
How this was made
The 30-second read
Why it matters
The analyst's target cut reinforces bearish sentiment, likely prompting short‑term sell pressure.
Market read
Analyst downgrade on a microcap adds new valuation data, offering a modest trading signal.
What to watch
Potential upside from upcoming fourth‑quarter machine deliveries and any strategic partnerships not yet disclosed.
Background
D‑Wave Quantum has missed revenue estimates for three consecutive quarters and faces class‑action lawsuits over growth claims.
Ticker impact
B. Riley lowered D‑Wave Quantum's price target to $22 from $27, citing missed revenue estimates and a steep growth outlook.
likely pressure as the market prices in the lower target
The new target is 34% below consensus and reflects ongoing revenue misses, prompting traders to reassess valuation.
Market effects
Highlights continued weakness in the quantum computing niche, potentially affecting peer valuations.
Limited to US-listed microcap investors.
Minimal; primarily a microcap-specific event.
Counterpoint
Some investors may view the lower target as a buying opportunity if the company can meet its Q4 machine shipment goals.
Key entities
- companyD‑Wave Quantum
Quantum computing hardware provider listed on Nasdaq (QBTS).
- analystB. Riley
Equity research firm that issued the price‑target downgrade.
