Morgan Stanley Slashes IONQ Price Target Ahead of Q4 Results

FomoAnxiety · 2026-02-28T08:22:09+00:00

Morgan Stanley's Joseph Moore reduced IonQ's price target from $58 to $35, indicating a 13.7% upside, while maintaining a Hold rating ahead of Q4FY25 results. Valuation compression is attributed to uncertainty in quantum commercialization and sector-wide trends. Analysts remain cautiously optimistic about IonQ's future.

FomoAnxiety

2026-02-28 08:22:09

Abstract generation in progress

Ahead of IonQ’s (IONQ) 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 the quantum computing firm 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) acquisition announcement. Additionally, he expects IonQ 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), 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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