IonQ's Exciting Developments: Forte 29-Qubit System And System Sale Transaction Set To Drive Revenue Growth: Analyst

Needham analyst N. Quinn Bolton reiterated a Buy rating on the shares of IonQ, Inc. IONQ, raising the price target to $11 from $9.

The analyst thinks IonQ has positioned itself with a strong cash balance, enabling it to become a positive cash flow generator without raising additional capital. 

Bolton applauds IonQ's latest generation system, Forte 29-Qubit, leading to efficiencies in continuous system scaling and revenue bookings.

IonQ has several exciting new developments, each likely to bolster the company's future revenue growth.

IonQ announced it has entered into its first system sale transaction with Switzerland-based QuantumBasel. Bolton thinks this agreement signals extreme confidence in IonQ's QC technology and its ability to deliver on its roadmap on time.

In conjunction with the transaction announcement, the analyst notes that IonQ increased 2023 bookings expectations by 25% to $50 million while leaving its sales guidance unchanged.

The company is exploring system sales and receiving interest from several customers, says Bolton.

Price Tag: IONQ shares are trading higher by 8.5% to $10.18 on the last check Monday.