Morgan Stanley upgrades Quantinuum to Overweight on technology edge; shares rise

Quantinuum's shares surged 4.9% in premarket trading on Thursday after Morgan Stanley upgraded the quantum computing firm to Overweight from Equal-weight. The investment bank lowered its price target to $62.00 from $78.00, citing the company's superior technical capabilities and market execution. This upgrade reflects a broader re-evaluation of the emerging quantum computing sector, which Morgan Stanley estimates could reach a market value of over $100 billion by 2040.

Analyst Joseph Moore highlighted Quantinuum's advanced position among pure-play developers, despite low current revenues. Morgan Stanley's proprietary framework, prioritizing technical progress, execution, manufacturability, and commercial indicators, led them to conclude that Quantinuum is Morgan Stanley's primary conviction pick in the sector.

The $62 price target implies an approximately 88% upside from recent trading levels, reflecting confidence in the company's trajectory toward commercial scale. Meanwhile, the firm maintained its Equal-weight rating on IonQ and initiated coverage on Infleqtion and Xanadu.