Quantinuum (QNT) has emerged as one of the strongest companies in quantum computing, backed by its trapped-ion technology, ability to execute its roadmap, and expanding network of commercial and government partnerships, Morgan Stanley said in a note Monday.

However, the industry is still in its early stages, with significant uncertainty around technology, commercialization, and competition, the firm said.

The firm said no company has yet achieved large-scale fault-tolerant quantum computing, but recent progress in error correction, increased government investment, and more credible industry roadmaps suggest the path toward commercially useful quantum systems is becoming clearer.

The firm projects Quantinuum's revenue growth to accelerate with the planned launch of Sol in 2027 and Apollo in 2029, reaching about $2.5 billion by 2030 as Quantinuum captures roughly 25% of a projected $10 billion quantum infrastructure market. The firm also expects earnings before interest, taxes, depreciation, and amortization to turn positive in 2029.

Morgan Stanley initiated coverage of Quantinuum with an equalweight rating and a $78 price target.

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