Needham reiterates Buy rating on Rigetti Computing stock, cites progress

Published 13/08/2025, 12:40
Needham reiterates Buy rating on Rigetti Computing stock, cites progress

Investing.com - Needham has reiterated its Buy rating and $18.00 price target on Rigetti Computing Inc. (NASDAQ:RGTI), a quantum computing company with a $5.2 billion market cap that has delivered an impressive 1,700% return over the past year, following the company’s second-quarter 2025 financial results.

Rigetti’s Q2 revenue came in slightly below the Street consensus estimate but exceeded Needham’s own projections as the quantum computing industry awaits reauthorization of the Department of Energy Quantum Leadership Act, formerly known as the National Quantum Initiative. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 18.82, though analysts anticipate sales decline this year.

The quantum computing company successfully achieved its mid-year target of developing a 4-chiplet, 36-qubit QPU with 99.5% median two-qubit gate fidelity through its Cepheus-1-36Q system, marking a significant technical milestone.

This achievement has reinforced management’s confidence in delivering a quantum processing unit with more than 100 qubits and 99.5% median two-gate fidelity by the end of 2025, according to Needham’s research note. For deeper insights into RGTI’s valuation and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, featuring detailed analysis of the company’s financial health and market position.

Rigetti indicated that quantum advantage—the point at which quantum computers outperform classical computers for practical applications—remains approximately four years away, and the company highlighted four key specifications required to reach this important industry milestone. With analyst targets ranging from $14 to $19, the stock currently trades at $16.20, though InvestingPro’s Fair Value analysis suggests the shares may be overvalued.

In other recent news, Rigetti Computing Inc. announced its Q2 2025 earnings, reporting a revenue of $1.8 million, which did not meet the forecasted $1.87 million. The company’s earnings per share (EPS) also fell short of expectations, registering a loss of $0.05. These financial results were released on August 12. The announcement was part of Rigetti’s efforts to keep investors informed about its financial performance. The revenue shortfall and EPS miss are significant for investors who closely monitor these metrics for insights into the company’s financial health. This update is part of a series of recent developments concerning Rigetti Computing. Analysts and investors will likely scrutinize these results in the context of the company’s broader strategic goals.

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