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Investing.com - B.Riley raised its price target on Rigetti Computing Inc . (NASDAQ:RGTI) to $19.00 from $15.00 on Wednesday, while maintaining a Buy rating on the quantum computing company’s stock. Currently trading at $15.43, RGTI has delivered an impressive return of over 1,200% in the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.
The firm increased the multiple on Rigetti’s long-term serviceable addressable market (SAM) view from 0.24x to 0.3x, resulting in the 25% price target increase.
B.Riley identified key technical factors supporting its outlook, including qubit module-based scalability reaching 100+ by year-end 2025, partner-funded system level advances, and error correction progress through Rigetti’s partnership with UK-based Riverlane.
The firm projects revenue of $1.9 million and earnings per share of ($0.06) for Rigetti, in line with consensus estimates of $1.9 million and ($0.07). The revenue mix is expected to be approximately 94% collaborative research/services and 6% QPU access.
Government quantum computing development funding remains a near-term revenue recognition issue for Rigetti due to its high Department of Energy and National Labs exposure, though B.Riley expects eventual funding through potential legislation like the $2.7 billion National Quantum Reauthorization Act or the $2.5 billion DOE Quantum Leadership Act.
In other recent news, Rigetti Computing announced it achieved a significant performance milestone, reaching 99.5% median two-qubit gate fidelity on its modular 36-qubit system. This accomplishment marks a twofold reduction in the median two-qubit gate error rate compared to its previous 84-qubit single chip Ankaa-3 system. The system utilizes four 9-qubit chips integrated together, showcasing Rigetti’s modular chip technology. Additionally, the company unveiled the industry’s largest multi-chip quantum computer, further demonstrating its advancements in reducing error rates. In another development, Cantor Fitzgerald initiated coverage of Rigetti Computing with an Overweight rating, setting a price target of $15.00. The research firm highlighted the potential economic implications of quantum computing technology, despite it being in the early stages. These recent developments underscore Rigetti Computing’s ongoing progress in the quantum computing field.
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