Arqit Quantum (ARQQ – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Scott Buck from H.C. Wainwright reiterated a Buy rating on the stock and has a $2.00 price target.
Scott Buck has given his Buy rating due to a combination of factors that indicate a positive outlook for Arqit Quantum’s future. Despite some initial delays in revenue generation, the company has established several high-profile partnerships, including a recent collaboration with Intel Corporation to deliver advanced post-quantum cryptography solutions. These partnerships, along with agreements with other influential tech vendors like Amazon Web Services and Dell Technologies, underscore the quality and potential of Arqit’s QuantumCloud product. Buck acknowledges the slower pace at which revenue has materialized but believes that the strategic collaborations speak to the credibility of the product and suggest a strong market opportunity going forward.
Adjusting for the timing of revenue from these partnerships, Buck has moderated short-term revenue expectations but remains optimistic about the company’s revenue growth in the latter half of the year and into 2025. With a solid cash position to sustain operations through the end of 2024, Arqit Quantum is in a position to continue fostering these relationships and begin to realize monetization. The anticipated improvement in revenue visibility is expected to drive the company’s shares towards Buck’s price target of $2. The adjusted revenue figures and the potential for a ramp-up in sales in the coming years contribute to the rationale behind the Buy rating, even as Buck slightly adjusts the price target to reflect current revenue estimations.
Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ARQQ in relation to earlier this year.
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Arqit Quantum (ARQQ) Company Description:
Centricus Acquisition Corp is a blank check company.
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