Xanadu Quantum Technologies' (XNDU) stock will rally as it meets more milestones and begins monetizing through quantum computing as a service, selling quantum hardware and other paths, RBC Capital Markets said in a note Monday.
Analysts said that Xanadu provides investors with exposure to quantum computing, a generational opportunity and photonics, a "unique" modality.
RBC said that while Xanadu still has several years before it can commercialize, it has already achieved key development milestones and has a path towards a fault-tolerant quantum data center.
Analysts, however, noted difficulties with benchmark valuation as Xanadu has nominal near-term revenue.
RBC initiated coverage on the stock with an outperform, speculative risk rating, and a $16 price target.
Price: 4.90, Change: +0.13, Percent Change: +2.62
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