Tuesday, H.C. Wainwright analyst increased the price target on Arqit Quantum Inc. (NASDAQ: NASDAQ:ARQQ) to $52.00 from the previous target of $27.00, while maintaining a Buy rating on the stock. Buck's positive outlook on the company stems from the substantial year-to-date rise in Arqit Quantum (NASDAQ:QMCO)'s share price, which has soared 265.6% compared to the Russell 2000's increase of 9.9%.
The analyst attributes the stock's robust performance to several factors, including favorable market conditions for small-cap tech firms, driven by lower interest rates and a growing investor appetite for innovative technologies. The analyst suggests that after a year of heightened investor interest in AI, the focus may shift to quantum computing and technology as potential leading themes for 2025 and beyond, which could further benefit Arqit Quantum.
Arqit Quantum's recent operational achievements have also contributed to the improved outlook. Earlier this month, the company reported F2H24 results, which included a new contract in the EMEA region. This deal is expected to boost revenues significantly starting from F1H25 and may open doors to additional partnerships in both government and enterprise sectors within the region.
Furthermore, H.C. Wainwright anticipates that other contracts, currently serving as proof of concept, will progress to full contract status, thereby driving incremental revenue in 2025. The analyst believes that the company is well-positioned to capitalize on the growing need for data security in the face of emerging quantum computing threats.
Lastly, Arqit Quantum's financial position has been bolstered by a successful capital raise of $13.6 million, completed at the end of September. This has contributed to the firm's ability to execute its business strategy effectively, further supporting the analyst's upgraded price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.