Quantum Computing Inc. (QUBT) shares climbed Thursday after catching the attention of Rosenblatt analyst John McPeake, who initiated coverage with a Buy rating and set a $22 price target. That's not something you see every day in the quantum computing space, where hype often outpaces actual revenue by a country mile.

Why The Bullish Call?

McPeake's thesis centers on what he calls a favorable risk-reward profile, backed by the company's diverse quantum and opto-electronics assets, a rock-solid balance sheet, and expanding fabrication capabilities. Translation: Quantum Computing has its fingers in multiple pies and the cash to see which ones actually bake.

The company's portfolio spans photonics, compute, security, sensing, and thin-film lithium niobate (TFLN) fabrication facilities. But here's the kicker: Rosenblatt notes that Quantum Computing is sitting on approximately $1.6 billion in cash with zero debt. Even better, the company's interest income is currently covering its operating expenses. As McPeake put it, the company has "a lot of ways to win and plenty of cash to get there."

That's an enviable position for any early-stage tech company, especially in a capital-intensive field like quantum computing where burning cash is practically a sport.

The Luminar Deal And Revenue Runway

Rosenblatt also highlighted Quantum Computing's planned acquisition of Luminar's LSI fabrication assets, which could inject roughly $25 million in annual revenue and improve the company's financial profile. That matters because the revenue baseline here is, shall we say, modest. The firm estimates Quantum Computing generated approximately $400,000 in revenue in 2024 and expects about $1.2 million in 2025 before the acquisition kicks in.

The company is already shipping products, including optimization software, a quantum random number generator, photonic reservoir computing tools, and lab and research offerings. Meanwhile, its first TFLN fabrication facility came online in the second quarter of 2025, designed to support internal product development and lower-volume customers. A second, higher-volume facility down the line could significantly expand production capacity and revenue potential.

Rosenblatt's $22 price target is based on a valuation framework tied to long-term revenue and earnings assumptions, discounted to reflect the company's early-stage revenue profile. In other words, they're betting on the future, not the present quarter.

What The Charts Say

The technical picture is decidedly mixed. QUBT is trading 12.8% above its 20-day simple moving average but sits 13.8% below its 100-day average. Over the past year, shares have climbed 10.82%, though the stock remains closer to its 52-week lows than highs.

The RSI stands at 55.07, sitting in neutral territory—neither overbought nor oversold. Meanwhile, the MACD is above its signal line, suggesting bullish momentum is present. The combination indicates mixed momentum, meaning traders should watch key levels closely for clues about future price action.

The Bottom Line

Quantum Computing's Benzinga Edge momentum score of 13.16 out of 100 shows the stock is currently underperforming the broader market. That's not exactly a ringing endorsement from a momentum perspective, and investors should proceed with caution given the stock's current positioning.

At the time of writing, Quantum Computing shares were trading 2.01% higher at $12.76.