Morgan Stanley Just Upgraded Quantinuum Stock. Here's Why.

Quantinuum (QNT) shares pushed higher on Oct. 15 after Morgan Stanley named the company its preferred quantum computing investment. Analyst Joseph Moore upgraded QNT stock this morning to “Overweight” and assigned a downwardly revised $62 price target, which still implies potential upside of about 70% from current levels. 

His bullish call arrives as Quantinuum stock is down a little under 50% versus its year-to-date high in early July. 

Why Is Morgan Stanley Bullish on Quantinuum Stock?

Moore’s bullish argument centers on a mismatch: Quantinuum leads its peers in both technological progress and execution, yet commands the lowest multiple on projected 2030 revenues. 

The analyst admitted that quantum computing sales remain too small to reliably identify eventual winners. 

“We, therefore, weight technology most heavily today,” he told clients in a report dated Oct. 15. And that’s exactly where QNT stock shines.

In short, Moore's upgrade reflects confidence that Quantinuum’s demonstrated capabilities deserve greater recognition in terms of valuation multiple.  

That said, QNT currently sits below its major moving averages (MAs), with an RSI in the late 20s indicating bears remain in control across multiple timeframes. 

Why QNT Shares May Be an Attractive Long-Term Pick

According to Morgan Stanley, a notable differentiator is “error correction,” which helps quantum computers perform calculations reliably enough to become commercially useful. The investment firm places QNT at Stage 7 of its eight-stage error-correction framework compared with Stage 4 for IonQ (IONQ).

Moore also identified the coming year as an important test, with the quantum-tech company’s Sol system expected to demonstrate further scaling progress.

Morgan Stanley's bullish view on Quantinuum shares rests on the company’s relative technical lead and delivery record, rather than a blanket endorsement of quantum computing stocks.

How Wall Street Recommends Playing Quantinuum

Interestingly, Morgan Stanley is among some of the more conservative Wall Street firms on Quantinuum. 

The consensus rating on QNT shares sits at “Strong Buy” currently, with the mean price objective of about $97 indicating potential for an exciting 165% rally from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.