Lake Street Initiates Coverage of Quantum Computing (QUBT) with Buy Recommendation

Lake Street initiated coverage of Quantum Computing (QUBT) with a Buy recommendation on September 18, 2025, setting an average one-year price target of $18.87/share, representing a 2.83% upside from its current price. This follows a significant increase in institutional interest, with 307 funds reporting positions (up 54.27%) and total institutional shares owned surging 161% to 61.838M, alongside a projected 869.58% annual revenue increase to $3MM. However, a put/call ratio of 1.04 indicates a bearish sentiment among options traders, suggesting a mixed outlook despite the analyst upgrade and substantial institutional accumulation.

Analysis

Quantum Computing (QUBT) has received a new 'Buy' rating from Lake Street, signaling fresh analyst confidence. However, the average one-year price target of $18.87 suggests a very modest upside of only 2.83% from its latest close, indicating that current analyst consensus sees limited near-term price appreciation. This contrasts sharply with the company's fundamental projections, which include a dramatic 869.58% increase in annual revenue to $3MM, though profitability remains distant with a projected non-GAAP EPS of -$0.51. The most significant signal is the massive influx of institutional capital; the number of funds holding QUBT increased by 54.27% in the last quarter, and total institutional share ownership surged by 161% to 61.8 million shares. Major players like Jane Street Group, Anson Funds Management, and Citadel Advisors have dramatically increased their positions, with portfolio allocation in QUBT jumping by 5,883% and 2,213% for Jane Street and Citadel, respectively. This strong institutional accumulation is directly at odds with the options market, where a put/call ratio of 1.04 indicates a bearish sentiment, suggesting that while institutions are building long-term stakes, there is concurrent hedging or short-term skepticism among traders.

Key Decisions for Investors

• Given the substantial increase in ownership by sophisticated institutions like Jane Street and Citadel, investors with a high-risk tolerance may interpret this as a signal of long-term conviction, warranting consideration of a position despite the company's pre-profitability status.
• The bearish 1.04 put/call ratio and minimal 2.83% consensus price target upside present a significant counter-signal, suggesting investors should proceed with caution and monitor for potential volatility or use options to hedge downside risk.
• Investors should scrutinize the upcoming financial reports to validate the projected 869.58% revenue growth, as failure to meet this aggressive target could undermine the bullish institutional thesis and validate the bearish options market sentiment.