IONQ - IonQ slips even as Morgan Stanley calls it 'early leader' in quantum computing

2023-04-26 10:55:29 ET

• IonQ ( NYSE: IONQ ) shares fell 1% on Wednesday even as Morgan Stanley started coverage on the company, calling it an "early leader" in quantum computing.
• Analyst Scott Fessler initiated IonQ ( IONQ ) shares with an equal-weight rating and $7 price target, noting that while the company is amongst the leaders in the industry, the technology is still unproven.
• "We view the company as an early leader in the industry, but technology risk is high as quantum advantage remains unproven," Fessler wrote in an investor note.
• However, Fessler added that once quantum computing - which lets computers process significant more data at a faster rate than traditional computers - reaches maturity, there will be a number of "practical" use cases.
• For IonQ ( IONQ ), Fessler said it has already gained traction with customers across a wide spectrum, which could allow for the trend to accelerate over the next decade.
• "We believe IonQ will have the opportunity to meaningfully outgrow industry peers over a multi-year period, but it will be almost entirely dependent on technology maturity and adoption - elements that will shake out over the coming years," Fessler added.
• Last month, IonQ ( IONQ ) reported fourth-quarter results and initiated an outlook for 2023 .

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