Morgan Stanley upgraded Quantinuum from equal-weight to overweight, establishing a price target of $62 per share. This target implies approximately 88% upside from the stock’s previous closing price.
To evaluate potential investments in the sector, Morgan Stanley developed an proprietary analytical framework assessing companies across four key dimensions: technical advancement, operational execution, manufacturing capabilities, and other progress indicators. The bank placed particular emphasis on technological innovation, noting it provides the clearest basis for differentiation among competitors.
“Quantinuum distinguishes itself through superior technology and execution capabilities,” stated analyst Joseph Moore in a research report released on Thursday. “Among pure-play quantum computing companies, Quantinuum is furthest along in development and maintains the strongest track record, despite the market currently assigning it the lowest valuation multiple relative to peers based on projected 2030 revenue.”
Despite these positive assessments, Moore cautioned that varying hardware architectures complicate direct comparisons between quantum computing companies. Additionally, current revenue figures remain too limited to meaningfully differentiate future prospects.
The quantum computing market is anticipated to expand from roughly $10 billion in 2030 to over $100 billion by 2040, contingent upon widespread commercial adoption of fault-tolerant quantum computers. However, no company has yet achieved this technological milestone.
“No company has successfully developed a fault-tolerant quantum machine, and current revenue metrics offer investors limited insight into where these businesses may ultimately head,” Moore noted. “Company development timelines are converging around early fault-tolerant systems targeted for 2029-2030, prompting us to evaluate stocks based on how credibly each company is advancing toward that objective.”
Morgan Stanley forecasts that the Colorado-based company’s revenue will grow significantly from approximately $270 million in 2028 to reach $2 billion by 2030. The bank identifies 2027 as a pivotal year for the industry, with Quantinuum’s next-generation Sol system positioned as “the most significant upcoming hardware milestone.”
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