IonQ’s Price Target Slashed to $35; Q4 Revenue Seen Above $40M
Morgan Stanley cut IonQ’s price target from $58 to $35 while keeping a neutral rating ahead of Wednesday’s Q4 results. Analysts expect a $0.33 per share Q4 loss and over $40 million in revenue, and note IonQ’s pending $1.8 billion SkyWater acquisition and $151 billion ceiling SHIELD defense contract.
1. Morgan Stanley Price Target Reduction
Joseph Moore of Morgan Stanley lowered IonQ’s price target from $58 to $35, retaining a neutral rating ahead of the company’s fourth-quarter results. The change reflects concerns over qubit stability, high error rates and shifting investor sentiment in quantum computing.
2. Q4 Financial Estimates
Analysts forecast a narrowed Q4 loss of $0.33 per share and revenue exceeding $40 million, up from less than $10 million a year ago. These estimates underscore accelerating sales growth as IonQ approaches key commercial milestones.
3. Strategic Expansion Initiatives
IonQ is finalizing a $1.8 billion acquisition of SkyWater Technology to scale domestic manufacturing capacity. The company also secured a spot on the SHIELD contract, which carries a $151 billion spending ceiling for defense-related quantum technology.