Morgan Stanley Slashes IONQ Price Target Ahead of Q4 Results

FomoAnxiety · 2026-02-24T08:02:07+00:00

Morgan Stanley's Joseph Moore lowered IonQ's price target from $58 to $35 ahead of Q4FY25 results, citing valuation compression and uncertainty in quantum commercialization. Despite a forecasted revenue surge and future prospects, Moore maintains a cautious outlook.

FomoAnxiety

2026-02-24 08:02:07

Abstract generation in progress

Ahead of IonQ’s IONQ -3.51% ▼ Q4FY25 results, Morgan Stanley’s top analyst Joseph Moore slashed his price target from $58 to $35, implying 13.7% upside potential. Moore maintained his Hold rating as IonQ prepares to release its results after market close on Wednesday, February 25. The lowered price target reflects a reduced valuation multiple due to uncertainty around long-term quantum commercialization, plus multiple compression similar to its peers.

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Moore is a five-star analyst on TipRanks, ranking #191 out of 12,108 analysts tracked. He has a 61% success rate and an impressive average return per rating of 22.60%.

Moore Sees Valuation Compression

Moore expects only modest revenue growth for fiscal year 2025, matching management’s comments alongside the SkyWater Technology SKYT -1.35% ▼ acquisition announcement. Additionally, he expects the quantum computing company to issue an upbeat 2026 outlook during the earnings call.

However, he is reducing IonQ’s valuation multiple due to two factors:

Uncertainty in quantum computing’s path to scalable profits amid error rates and qubit issues
Sector-wide multiple compression among peers like Rigetti RGTI +0.63% ▲ , as investors prioritize profitability over hype

Road Ahead for IonQ

The Street expects an adjusted loss of $0.51 per share, much lower than the prior-year period’s loss of $0.93 per share. Sales are forecast to surge nearly 245% year-over-year to $40.38 million.

IonQ has a lot of catalysts ahead. It is buying SkyWater Technology for $1.8 billion, combining quantum systems with domestic chip manufacturing. Moreover, IonQ was selected for the Scalable Homeland Innovative Enterprise Layered Defense, SHIELD, indefinite-delivery/indefinite-quantity (IDIQ) contract with a ceiling of $151 billion.

Does IONQ Have a Future?

Analysts remain cautiously optimistic about IonQ’s long-term prospects. On TipRanks, IonQ has a Moderate Buy consensus rating based on seven Buys and three Hold ratings. The average IonQ price target of $72.75 implies 136% upside potential from current levels. Over the past year, IONQ shares have dropped 1.5%.

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