Cantor Fitzgerald initiates Rigetti Computing stock coverage with Overweight rating
Investing.com
Published Jul 02, 2025 07:24AM ET
Investing.com - Cantor Fitzgerald initiated coverage on quantum computing company Rigetti Computing Inc . (NASDAQ:RGTI) with an Overweight rating and a $15.00 price target on Wednesday. The stock, currently trading at $11.33 with a market capitalization of $3.3 billion, has shown remarkable performance with a 1,093% return over the past year.
The research firm acknowledged that quantum computing technology remains in its early stages but represents "one of the most highly coveted technical milestones with enormous economical implications."
Cantor Fitzgerald noted that while full-scale quantum computing capabilities are likely years away from realization, investor interest in the sector has already been significant.
The firm pointed out that stocks in the quantum computing sector have experienced "meaningful appreciation" and currently trade at "steep valuations based on any near-term revenue or earnings forecast."
Despite the high valuations, Cantor Fitzgerald still sees upside potential for Rigetti Computing stock due to what it describes as the "strategic value of quantum computing."
In other recent news, Rigetti Computing has completed a $350 million stock sale, enhancing its financial position to support growth in quantum computing. This funding increases Rigetti's cash reserves to approximately $575 million, which the company plans to use for working capital, capital expenditures, and potential strategic partnerships. In its Q1 2025 earnings report, Rigetti surprised investors with an earnings per share (EPS) of $0.13, surpassing the forecasted loss of $0.05. However, the company reported revenue of $1.47 million, which fell short of the expected $2.82 million.
The earnings call revealed a decline in gross margins from 49% to 30% year-over-year, and an increase in operating expenses to $22.1 million. Despite these mixed results, Benchmark analyst David Williams reiterated a Buy rating on Rigetti, maintaining a price target of $14. Williams highlighted Rigetti's technological progress and robust architecture as strengths. The company is also making strides in strategic collaborations, including a significant investment from Quanta Computer Inc., which purchased $35 million of Rigetti's common stock. These developments reflect Rigetti's ongoing efforts to advance its position in the quantum computing industry.
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