D-Wave Quantum's AI/ML Commercialization Strategy Wins Analyst Conviction; Expects Continued Momentum

Benchmark analyst David Williams maintained a Buy on D-Wave Quantum Inc QBTS with a $4 price target.
Continuing to expand on its rich product and services, D-Wave shared plans to build a feature selection to optimize model training and prediction for AI/ML applications using the quantum hybrid approach.
The feature selection offerings will be available across D-Wave's hybrid solvers and professional services aimed at improving efficiency with a "one-shot" solution vs. an iterative approach of classical alternatives.
On the business front, the company disclosed raising additional liquidity of ~$20 million since the end of October through the $150 million equity line of credit (ELOC) agreement established with Lincoln Park.
The balance sheet ended the prior quarter with $13.8 million of cash.
Williams remains convinced in the company's commercialization strategy, which delivers results, evidenced by the pipeline of 63+ business customers and 34,000 developers worldwide.
With the consistent performance improvements coupled with an expanding suite of complimentary compilers, hybrid solvers, and easy access to D-Wave's compute resources, the analyst expects momentum will continue to accelerate.
Williams remains encouraged by the innovative product introductions and continued advancement of LEAP access, which has expanded to 39 countries, including Israel, the latest addition.
The company also announced initiatives to improve its production and commercial readiness efforts by adopting compliance standards to ensure customer data integrity.
The analyst's valuation multiple is in-line with higher-quality quantum peers.
If the quantum computing market continues to evolve as predicted and D-Wave's technology roadmap and demand for optimization problems play out as expected, the analyst sees shares deserving of at least an in-line peer group average multiple over time.
Price Action: QBTS shares traded lower by 3.40% at $0.9087 on the last check Tuesday.

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