Rigetti Computing (RGTI) received some praise on Tuesday after Benchmark raised its price target on the stock due to strong execution and rising momentum in the quantum computing industry. Indeed, the firm highlighted Rigetti’s unique products and services, as well as its growing government and private-sector contracts. As a result, five-star Benchmark analyst David Williams increased his target from $20 to $50 while maintaining a Buy rating. Interestingly, he said that Rigetti’s scalable superconducting architecture and improving qubit fidelity are clear signs of progress.
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Williams also pointed out that recent hardware sales suggest adoption is starting to shift toward real commercialization. Notably, because the company controls its own hardware stack and has a cost-efficient design, he believes Rigetti can scale more effectively. In addition, he stated that its strong intellectual property creates barriers for competitors and could make it an attractive takeover target for larger tech companies that want to speed up their quantum roadmaps.
Williams further noted that investor interest in quantum computing is growing quickly, with multiple billion-dollar funding rounds showing that there is strong institutional support for the industry. While he admitted valuations are difficult to pin down, he believes that the long-term opportunity is enormous, even if investors should remain somewhat cautious. Nevertheless, for now, momentum is working in Rigetti’s favor, and as long as the industry keeps showing real technical and commercial progress, Williams expects the quantum theme to stay strong.
Is RGTI Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on seven Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. However, the average RGTI price target of $26.42 per share implies 36.8% downside risk.
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