Rigetti Computing stock downgraded to Neutral by B.Riley as shares price in future success

Investing.com - Rigetti Computing Inc. (NASDAQ:RGTI) was downgraded from Buy to Neutral by B.Riley on Monday, despite the firm raising its price target to $42.00 from $35.00. The stock currently trades at $44.27, slightly above the new price target.

The quantum computing company has seen its shares surge approximately 190% year-to-date, pushing its market capitalization to $14.3 billion, which B.Riley notes now discounts 52% of the total addressable market expected between 2030 and 2035. InvestingPro data shows an even more dramatic 3,499% return over the past year, with the stock trading at a high Price/Book multiple of 25.9x.

B.Riley acknowledged positive developments in Rigetti’s business, highlighting September’s $11.5 million in new deals that expand the company’s commercial horizon as it progresses on its path from 100-qubit to 1,000-qubit systems between year-end 2025 and 2030.

The research firm indicated that while consensus estimates for the third quarter of 2025 appear achievable, it does not expect Rigetti to provide fourth-quarter guidance, consistent with the company’s normal practices. B.Riley also cautioned about potential sales risk due to delayed U.S. government funding authorizations.

Regarding Rigetti’s financial position, B.Riley noted the company’s operating cash burn of approximately $19 million per quarter appears manageable with its current cash reserves of $572 million. This aligns with InvestingPro data showing Rigetti operates with a moderate debt level and liquid assets that exceed short-term obligations, with a strong current ratio of 41.57. Investors should note that Rigetti is scheduled to report earnings in just 7 days, on November 10. For deeper insights and 16 additional ProTips on RGTI, plus comprehensive analysis available for 1,400+ US equities, consider exploring the Pro Research Report.

In other recent news, Rigetti Computing, Inc. has reported several significant developments. The company secured purchase orders worth approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are expected to be delivered in the first half of 2026. Additionally, Rigetti was awarded a $5.8 million contract from the Air Force Research Laboratory to advance superconducting quantum networking, collaborating with Dutch startup QphoX. The company is also partnering with NVIDIA on a new platform that integrates AI supercomputing with quantum computers, showcased at NVIDIA GTC in Washington, D.C. On the analyst front, Benchmark raised its price target for Rigetti to $20, citing strong second-quarter results and progress on its chiplet-based scaling strategy. Cantor Fitzgerald also increased its price target to $18, reflecting the company’s market potential. These recent developments highlight Rigetti’s ongoing efforts in advancing quantum computing technology and expanding its market reach.

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