Rigetti Computing (RGTI) stock won a new Street High price target of $17 from Needham analyst Quinn Bolton, despite its disappointing Q4 results. The price target implies an impressive 81.8% upside potential from current levels. Bolton remains a “Buy” on Rigetti stock regardless of the uncertainty surrounding the DOE (Department of Energy) Funding and the DOD’s (Department of Defence) Quantum Benchmark Initiative selection. The analyst is optimistic about the relative progress the company has made on several fronts, including advancements in quantum computing processors and making strategic partnerships in the space.
Bolton is a five-star analyst, ranking 469 of the 9,418 analysts covered on TipRanks. He has an average return per rating of 12.10% and a success rate of 48%. To date, Bolton’s best recommendation has been on RGTI stock between August 9, 2024 until today. The analyst has earned an impressive 800% return for his Buy view on RGTI during this period.
Let’s Understand Bolton’s Views on RGTI
Rigetti Computing offers full stack quantum computing solutions through its proprietary quantum-classical infrastructure. Bolton remains bullish on Rigetti Computing despite having lowered the model estimates moderately, to align with its Q4 performance.
Bolton is encouraged by the company’s approach of producing scalable multi-chip processors, which are fully designed and manufactured in-house. Additionally, RGTI boasts some crucial government and commercial customers as well as lucrative partnerships that could eventually lead to newer R&D (research and development) agreements and opportunities as the technology continues to scale.
Key takeaways from Bolton’s bullish view:
- Strategic Partnership with Quanta Computer – Quanta Computer is a global Fortune 500 Taiwanese computer server and notebook ODM (Original Design Manufacturer). The strategic partnership aims to quicken the manufacturing and time to launch of superconducting qubit modality, enabling high-speed operations and scalability.
- Sale of Two Novera QPUs – In Q4FY24, Rigetti announced the successful sale of two Novera 9-qubit QPUs (Quantum Processing Units), one sold to the Montana State University and the other to UK Government, further strengthening its market presence.
- On Track to Meet 2025 Targets – Bolton reemphasized the management’s conviction in achieving its goals for 2025. First, the company will manufacture a 36-qubit processor consisting of four 9-qubit QPUs tiled together by mid-2025. Second, it aims to build a 100+ qubit system by the end of 2025, which will utilize a similar tiling technique.
Is Rigetti Computing a Good Stock to Buy?
With six unanimous Buy ratings, RGTI stock commands a Strong Buy consensus rating on TipRanks. Also, the average Rigetti Computing price target of $14.80 implies 58.3% upside potential from current levels. In the past year, RGTI stock has zoomed nearly 403%.
