Technology

Report by Rosenblatt Securities

QUBT has legitimate quantum assets across photonics, compute, security and sensing, alongside burgeoning thin-film lithium niobate (TFLN) fabs that could supply both internal and industry demand for integrated quantum photonics, nonlinear optics and optical waveguides. The company is also acquiring fabs (LSI) from Luminar for <5x revenue, improving P&L optics and diversifying into another key laser market. With $1.6bn of cash and no debt, QUBT’s interest income currently exceeds operating expenses. Rosenblatt likes the risk-reward, citing exposure to quantum computing, fab-driven product integration, customer acquisition in fast-growing optical communications, optionality around photonic gate-based quantum computing and the potential to embed quantum security into consumer edge devices. They initiate coverage with a Buy rating and TP of $22 (80% upside).

Consumer Discretionary

Report by Entext

Growing China autonomous exposure - specialises in lidar technology used in self-driving vehicles and is one fallen SPAC that Sean Maher believes has a good chance of retesting prior highs over the next couple of years given its strong niche position in a secular growth market. Alongside LAZR, Sean has been keen to add auto exposed semi / sensor names like NXP and On Semiconductor into current weakness because the consensus is underestimating just how much incremental hardware will be embedded in the average vehicle by 2025 onwards.