Lake Street Remains a Buy on Quantum Computing (QUBT)

Quantum Computing Inc. (NASDAQ:QUBT) is one of the Best Quantum Computing Stocks to buy and Hold Forever. Although the stock has declined around 12.6% over the past month, the Street sees more than 107% upside from the current level. The bullish sentiment from analysts is based on the expectation of accelerating commercialization of quantum and photonic technology.

​Recently, on July 6, Lake Street reiterated a Buy rating on Quantum Computing Inc. (NASDAQ:QUBT) with a price target of $16. The firm noted that the bullish sentiment comes from the company’s recent acquisition of NHanced Semiconductors. The deal was completed on June 23 and is valued at $73.1 million in cash and stock, plus up to $72.0 million in additional earnout payments.

​Lake Street sees this as a follow-on to the Luminar Semiconductor acquisition that closed in February. The firm noted that together, the deals deepen Quantum Computing’s photonics manufacturing and advanced-packaging capabilities. Moreover, management is framing the acquisition as the launch of Fab 2, arriving years ahead of the company’s roadmap.

​The firm added that this deal can speed up the company’s shift from a research- and prototyping-focused company toward scalable commercial production. Moreover, it also adds semiconductor and nanophotonics fabrication capacity, advanced-packaging expertise, and specialized engineering talent.

Quantum Computing Inc. (NASDAQ:QUBT) makes photonics-based equipment for both commercial and government clients. It specializes in thin-film lithium niobate (TFLN) photonic chips that convert electrical signals into optical signals. It is headquartered in Hoboken, New Jersey.

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