On Tuesday, Benchmark analysts maintained their positive stance on D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE: QBTS), reiterating a Buy rating.
The affirmation follows the company's announcement of its first customer purchase of an Advantage annealing quantum computer, which led to a substantial upward revision of its previous bookings guidance.
D-Wave Quantum reported a significant milestone with the sale of its Advantage annealing quantum computer, marking the company's entry into a new revenue stream. This sale is not just a boost to the company's financial outlook but is also seen as a testament to the growing market demand for quantum computing solutions.
The company also revealed that it had successfully raised approximately $150 million in cash since the end of the third quarter by utilizing its existing equity facilities. As a result, D-Wave Quantum now has $178 million in cash reserves.
Additionally, after the market closed on Friday, D-Wave Quantum filed for an additional $150 million at-the-market (ATM) offering, which could provide further opportunities to enhance its financial position.
Benchmark analysts setting a price target of $8.00 view the hardware sale as a significant development for D-Wave Quantum, not only because it opens up a new avenue for revenue but also because it confirms the increasing interest and demand for quantum computing technology in the market.
The move to file an additional $150 million ATM is seen as a strategic step by D-Wave Quantum to increase its financial flexibility. This action could potentially allow the company to capitalize on future growth opportunities and continue its expansion in the quantum computing sector.
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