Investing.com -- Cantor Fitzgerald began coverage of Quantum Computing Inc with a Neutral rating and $15 price target, saying the company’s dual-track strategy, spanning photonic chips and quantum computing platforms, offers promise but faces execution and timing challenges.

The brokerage said quantum computing remains in its early stages, with enormous economic implications over the long run, but near-term revenue remains modest and valuations across the space are already elevated.

Quantum raised $200 million in a private placement last month, bringing its total cash to more than $350 million, which Cantor said gives the company a longer runway to support R&D, product commercialization, and potential acquisitions.

The firm is developing thin-film lithium niobate (TFLN) photonic chips at a new foundry in Tempe, Arizona, built in the first quarter.

It plans to sell custom chips for commercial applications while using proprietary versions in its own quantum systems. Initial revenue from the facility is expected in 2025, with growth accelerating in 2026.

Quantum’s current computing product, the Dirac-3 entropy-based quantum computer, was launched in early 2024 and is available both as a cloud subscription and an on-premise system.

Recent collaborations include projects with NASA’s Langley Research Center and the Sanders Tri-Institutional Therapeutics Discovery (NASDAQ: WBD ) Institute.

While Cantor noted progress on multiple fronts, it sees photonics as a more complex commercialization path and values the stock at 16x enterprise value-to-sales based on a discounted estimate of 2035 revenue.