QBTS Stock Rises Premarket: BMO Hails D-Wave Quantum's 'Commercial Revenue', Sees 86% Upside

D-Wave Quantum Inc. (QBTS) stock gained premarket on Friday after BMO Capital initiated coverage with an ‘Outperform’ rating. Analyst Harsh Kumar cited the quantum computing company’s commercial revenue, first-mover advantage, and dual-technology strategy, placing D-Wave among the sector’s strongest candidates for long-term commercial success.

BMO Sees 86% Upside For D-Wave Quantum 

Analyst Kumar began coverage of D-Wave Quantum with a $35 price target, implying an 86% upside to the stock’s last closing price. He pointed to the company's commercial progress and position within the rapidly developing quantum computing industry.

BMO described D-Wave as an unusual player in the sector because it has already generated meaningful commercial revenue from quantum computing. The firm believes that this early business activity could give D-Wave an advantage as the broader industry works to move quantum technology from research projects into practical applications.

Kumar also highlighted D-Wave's two-part technology strategy, annealing and gate-model quantum systems. BMO Capital sees the combination as a potential strength because it gives the company multiple avenues to pursue customers and develop commercially useful quantum solutions.