D.A. Davidson & Co. analyst Alexander Platt initiated coverage on IonQ, Inc. (NYSE:IONQ) with a Buy rating and price target of $50.
The analyst sees IonQ as a standout pure-play investment poised to benefit from the quantum computing sector's rapid expansion, fueled by the limitations of classical computing in tackling complex problems.
IonQ's core advantage lies in its trapped-ion qubit architecture, which delivers superior reliability, accuracy, and scalability compared to rival designs, adds the analyst.
Platt says that unlike IBM, Google, and others facing challenges with inconsistencies and short operational lifespans, IonQ leverages stable atomic properties for greater precision and extended performance times.
This approach reduces errors, enables more complex calculations, and simplifies system connectivity, allowing IonQ to tackle a wider array of problems effectively, writes the analyst.
The analyst says that Quantum Computing as a Service offers significant growth potential by providing access to quantum processing units without the need for upfront hardware investment.
IonQ's Quantum Cloud platform and Hybrid Services allow enterprises to leverage quantum-enhanced solutions and integrate quantum and classical computing, adds the analyst.
Investors can gain exposure to the stock via Defiance Quantum ETF (NASDAQ:QTUM) and Spear Alpha ETF (NASDAQ:SPRX).
Price Action: IONQ shares are down 0.67% at $37.25 at the last check Thursday.
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Image: Courtesy of IonQ.