TD Cowen analyst Krish Sankar has maintained their bullish stance on RGTI stock, giving a Buy rating today.
Krish Sankar has given his Buy rating due to a combination of factors that highlight Rigetti Computing’s promising future. The company is on track with its technology roadmap, achieving significant milestones such as a 99.5% fidelity rate for its 84Q Ankaa-3 chip and planning for modular chip designs with 36Q and 100Q+ configurations. These advancements position Rigetti well to compete for funding from the Department of Defense and Department of Energy, particularly with the potential support from the $2.5 billion National Quantum Initiative reauthorization.
Additionally, Rigetti’s financial health is robust, with $217 million in cash expected by the end of 2024, providing sufficient funding through 2027. The recent partnership with Quanta is also seen as a strategic move, offering valuable manufacturing and financial resources. The company’s ability to raise $153 million through stock sales further strengthens its cash reserves, alleviating investor concerns about its operational sustainability. These factors collectively underpin Sankar’s positive outlook on Rigetti’s stock.
In another report released today, Needham also maintained a Buy rating on the stock with a $17.00 price target.