RGTI: Quantum Breakthroughs Keep Rigetti on Analysts 'Buy' Radar

July 9 - Benchmark has reiterated its buy rating on Rigetti Computing RGTI, maintaining its $14 price target following new developments in the firm's quantum hardware lineup.

The California-based company has rolled out two new systems, the 84-qubit Ankaa-3 and a compact 9-qubit Novera, as part of its roadmap to scale modular quantum processors. Rigetti expects to unveil a 36-qubit system by midyear, and a larger 100+ qubit machine before year-end.

Benchmark analyst David Williams pointed to Rigetti's modular architecture and in-house quantum processing units as key advantages in tackling scalability, a core challenge in the field. He noted the company's progress in internal fidelity metrics is vital for achieving long-term quantum capability.

While first-quarter revenue of $1.5 million fell short of expectations, Rigetti received a $35 million equity investment from Quanta Computer in April. Its liquidity position now stands at $237.7 million.

Williams said Rigetti is making consistent strides despite a cautious outlook on sector adoption. The analyst views Rigetti's technical foundation and patent base as well-positioned to drive future gains.

Rigetti shares are roughly 1% up on Wednesday early trading.