Rigetti Computing (RGTI) may have posted a wider loss in its Q2 results, but that hasn’t shaken Wall Street’s confidence. Notably, top analysts have raised their price targets on RGTI stock, while several others have reaffirmed their Buy ratings. Year-to-date, RGTI stock has gained over 8%.
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RGTI Q2 Recap
For context, Rigetti’s revenue fell 41.6% from last year, coming in just under the expected $1.87 million. The company also posted a loss of $0.13 per share, which was bigger than last year’s $0.07 loss and worse than Wall Street’s forecast of a $0.05 loss.
Benchmark Raises Price Target on RGTI
Five-star-rated analyst David Williams at Benchmark raised his price target on RGTI from $14 to $20, implying an upside of 16% from current levels. Williams remains optimistic about Rigetti’s latest progress, including the scheduled launch of its 100-qubit multi-chiplet QPU and the recently released Cepheus-1 system. He said these milestones bring the company closer to building a 1,000+ qubit system with 99.9% fidelity. Management still aims to reach this goal within three to four years.
For context, Rigetti has launched its multi-chip quantum computer, Cepheus-1-36Q, for general use. Made from four chiplets, it delivers a 99.5% median two-qubit gate fidelity, cutting error rates in half compared to its earlier system. In quantum computing, a qubit is the basic unit of information. Having more qubits with low error rates helps quantum computers solve problems beyond the reach of today’s supercomputers.
Williams also highlighted Rigetti’s strengthened balance sheet, with $350 million raised during the period, bringing total cash to $570 million. He considers this more than enough to fund ongoing development until the company reaches commercialization.
Other Analysts Weigh In on RGTI Stock
Similarly, Cantor Fitzgerald’s top-rated analyst, Troy Jensen, lifted his price target from $15 to $18 on RGTI with a Buy rating.
Meanwhile, five-star-rated analyst Quinn Bolton at Needham maintained his Buy rating. Bolton praised the company’s strong progress in quantum computing. He noted that, while quantum advantage is still about four years away, Rigetti remains on track with its roadmap, boosting confidence in its long-term growth.
What Is the Target Price for RGTI Stock?
According to TipRanks, RGTI stock has received a Strong Buy consensus rating, with seven Buys and one Hold assigned in the last three months. The average price target for Rigetti Computing is $18.71, suggesting a potential upside of 13.5% from the current level.
