D-Wave Quantum (NASDAQ: QBTS) shares climbed 2% on Friday after BMO Capital Markets initiated coverage with a bullish rating and a significant price target.
BMO Capital assigned an Outperform rating to QBTS alongside a $35 price target, implying approximately 85% upside from the stock’s latest closing price.
BMO analyst Harsh Kumar identified D-Wave as relatively well positioned within the competitive quantum computing landscape for a specific and notable reason.
Kumar pointed to the company’s ability to already generate commercial revenue, which separates it from many rivals still in purely experimental stages of development.
D-Wave’s work across both annealing and gate-model quantum systems was also cited by Kumar as a distinguishing factor supporting the bullish outlook.
The analyst expects broader adoption of D-Wave’s technology as businesses transition away from experimentation and move toward practical, real-world quantum computing applications.
Recent operating figures offer some credibility to that optimistic assessment, with the company reporting $35.5 million in bookings during the first half of 2026.
That bookings figure represents a more than 1,120% increase compared to the same period in the prior year, a remarkable acceleration in commercial activity.
Remaining performance obligations also surged 668% to $40.7 million, suggesting a growing pipeline of committed future revenue for the company.
Revenue, however, remains a meaningful concern for investors evaluating whether QBTS can justify its current market valuation over the longer term.
Second-quarter revenue came in at approximately $3.1 million, falling short of analyst expectations and raising questions about the pace of top-line growth.
The company also posted a per-share loss of $0.13 in the second quarter, notably wider than the $0.09 loss that analysts had projected heading into the report.
BMO’s initiation of coverage is likely to support near-term investor sentiment around QBTS, given the firm’s reputation and the scale of the implied price target.
Despite the analyst enthusiasm, D-Wave will ultimately need to demonstrate sustained and stronger revenue growth to fully validate its current valuation in the market.
