Quantum computing is gaining traction, but Jefferies isn’t rushing to turn bullish on Rigetti Computing (RGTI) just yet. Analyst Kevin Garrigan of Jefferies began coverage with a Hold rating and a $30 price target, citing execution concerns despite the company’s long-term potential.
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Execution Risks Keep Jefferies on the Sidelines
Rigetti works on gate-based quantum systems and uses a chiplet-style design, which Jefferies said has shown progress and could help the company scale over time. The analyst noted that broader interest in quantum computing should support early demand as more customers move into pilot programs.
Even so, Jefferies remains cautious on the stock. Garrigan pointed to past roadmap delays, which have hurt confidence and raised questions about delivery. While recent technical progress is encouraging, the firm wants to see steady results over time before taking a more positive stance.
Another concern is Rigetti’s revenue mix. Much of the company’s current revenue comes from government customers, which limits visibility and makes near-term growth harder to predict. Jefferies said this reliance adds risk, especially as competition in the quantum space continues to grow.
On the positive side, Rigetti’s financial position provides support. The company is debt-free and holds roughly $600 million in liquidity, giving it enough runway to fund product development and expand its quantum cloud offerings. Jefferies said this strong balance sheet puts Rigetti in a good position if early pilots turn into repeat usage and longer-term contracts.
Is RGTI Stock a Buy Now?
On TipRanks, Rigetti Computing has a consensus Strong Buy rating among nine Wall Street analysts. That rating is based on six Buys and three Holds issued in the last three months. The average RGTI price target of $40.43 implies 71.82% upside from current levels.
