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On Thursday, Benchmark analyst David Williams maintained a Buy rating on Rigetti Computing Inc . (NASDAQ: NASDAQ:RGTI), with a consistent price target of $14.00. Williams expressed continued confidence in the company’s technological advancements and steady progress toward its internal fidelity goals. Highlighting Rigetti’s superconducting methodology and modular architecture, Williams believes these features provide a significant advantage in addressing the scalability challenges faced by gate-based quantum systems.
Rigetti Computing, while projecting a more conservative timeline for widespread adoption compared to some of its peers, is recognized for its potential in near-term revenue through QPU hardware sales. This comes before the broader market for quantum computing matures. While current revenue stands at $9.21M for the last twelve months, InvestingPro analysis indicates analysts expect some sales decline in the current year. The platform offers 12 additional exclusive ProTips for RGTI, providing deeper insights into the company’s financial health and market position.
The analyst praised Rigetti’s consistent execution across its technology platform, identifying fidelity as the primary hurdle to achieving quantum advantage. Despite the company’s cautious stance on the speed of industry-wide adoption, Williams is optimistic about Rigetti’s strategic position. He emphasized the company’s robust architecture, significant intellectual property moat, and balance sheet strength as foundational advantages. Indeed, InvestingPro data confirms the company holds more cash than debt and maintains a strong current ratio of 18.82x, though its overall Financial Health score suggests careful monitoring is warranted.
The reiteration of the Buy rating and the $14 price target reflects Benchmark’s belief in Rigetti’s capacity to overcome existing challenges and capitalize on its technological edge in the quantum computing sector. Williams’ commentary underscores the firm’s anticipation of Rigetti’s continued progress and success in the quantum computing industry. Based on InvestingPro’s Fair Value analysis, the stock currently appears overvalued despite its strong market performance, with an impressive 854% return over the past year.
In other recent news, Rigetti Computing reported its Q1 2025 financial results, revealing a surprising earnings per share (EPS) of $0.13, which surpassed the anticipated loss of $0.05. However, the company faced challenges as its revenue fell short of expectations, totaling $1.47 million against a forecast of $2.82 million. The revenue decline was significant compared to the $3.1 million reported in the same quarter of the previous year. Rigetti’s gross margins also decreased to 30% from 49% year-over-year, and operating expenses increased to $22.1 million, contributing to a larger operating loss of $21.6 million. Despite these challenges, Rigetti’s net income reached $42.6 million, aided by non-cash changes in derivative warrant and earn-out liabilities. The company also announced a strategic collaboration with Quanta Computer, which invested $35 million in Rigetti common stock. Additionally, Rigetti’s participation in DARPA’s quantum benchmarking initiative and the UK Innovate award to upgrade its quantum processing unit reflect ongoing efforts to advance its technological capabilities. These developments highlight Rigetti’s focus on technological advancements and strategic partnerships to maintain a competitive edge in quantum computing.
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