Top-rated analyst David Williams from Benchmark Co. has maintained his Buy rating on the U.S.-based quantum computing company IonQ (IONQ), citing strong networking momentum. However, he reduced his price target from $50 to $45, still predicting an 80% upside. Despite the company missing Q4 FY24 earnings estimates, which led to a more than 16% drop in its share price, Williams remains optimistic about IONQ’s long-term potential.
IonQ develops and provides advanced quantum hardware and cloud-based computing services.
Benchmark Sees Growth Potential for IONQ
Benchmark sees strong growth potential for IonQ driven by its technically and operational progress highlighted by acquisition of ID Quantique (IDQ) and a planned $500 million capital raise.
Speaking of the capital raise, Williams believes that the funds will boost the company’s balance sheet and support new opportunities in computing, networking, sensing, and applications. Additionally, Williams highlighted that the IDQ acquisition strengthens IONQ’s quantum networking and sensing capabilities while expanding its presence in Switzerland and Korea.
Williams also pointed out that IONQ stock’s drop after earnings was mainly due to concerns about share dilution from the capital raise and using stock to buy IDQ.
That said, Williams acknowledged that the CEO transition was unexpected. However, management explained that appointing Niccolo de Masi as the new CEO is a strategic step to enhance executive leadership as the company expands.
Williams’ Ranking on TipRanks
Williams ranks #199 out of 9,421 analysts tracked by TipRanks and has a five-star rating according to the TipRanks Star Ranking tool. Through this tool, TipRanks evaluates financial experts based on success rate, average returns, and statistical significance.
Over the past year, Williams has achieved a 71% success rate on IONQ, making him one of the most accurate analysts for the stock.
Is IONQ Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IONQ stock based on four Buys, two Holds, and zero Sell assigned in the last three months. The average IONQ price target of $43.50 implies a 74.63% upside potential.
Year-to-date, IONQ stock has declined by over 40%.
