Rigetti Computing Receives “Moderate Buy” Rating from Analysts

Rigetti Computing, Inc. (NASDAQ:RGTI) has garnered an average recommendation of “Moderate Buy” from eleven research firms currently covering the company, according to Marketbeat Ratings. This consensus includes one sell rating, two hold recommendations, and eight buy ratings, indicating a generally positive outlook for the firm.

Analysts have been active in providing updates on Rigetti’s stock. Notably, B. Riley recently upgraded its rating from “neutral” to “buy,” setting a price target of $35.00. Similarly, Wedbush increased its price target from $35.00 to $40.00 and assigned an “outperform” rating. In contrast, Royal Bank of Canada adjusted its rating to “hold,” reflecting a more cautious stance.

In addition, on November 11, Williams Trading established a price objective of $40.00 for Rigetti Computing. On November 15, Wall Street Zen raised its rating from “sell” to “hold,” suggesting a shift in sentiment from bearish to neutral.

Institutional Investment Trends

Recent trading activity reveals that several institutional investors and hedge funds have altered their stakes in Rigetti Computing. For instance, IFP Advisors Inc. increased its holdings by 146.1% during the second quarter, now owning 2,190 shares valued at approximately $26,000. Danske Bank A S acquired a new stake valued at around $30,000 in the third quarter, while Parallel Advisors LLC expanded its position by an impressive 403.2%, now holding 1,087 shares worth about $32,000.

Armstrong Advisory Group Inc. also significantly increased its holdings by 225.4%, obtaining 2,974 shares valued at approximately $35,000. Clearstead Advisors LLC initiated a new position during the third quarter, contributing to the institutional ownership, which now stands at 35.38% of the company’s stock.

Stock Performance and Financials

As of Friday, Rigetti Computing’s stock opened at $24.96. The company currently has a market capitalization of $8.24 billion, a price-to-earnings ratio of -19.20, and a beta of 1.70. Over the past year, the stock has experienced significant volatility, with a low of $6.86 and a high of $58.15. The fifty-day simple moving average is approximately $24.94, while the 200-day average stands at $25.23.

Rigetti Computing recently reported its quarterly earnings on November 10, 2023. The company achieved an earnings per share (EPS) of ($0.03), surpassing analysts’ expectations of ($0.05) by $0.02. Revenue for the quarter was $1.95 million, slightly below the anticipated $2.17 million, marking a year-over-year decline of 18.1%. Analysts predict that Rigetti will post an EPS of ($0.34) for the current fiscal year.

Rigetti Computing is recognized as a leading quantum computing firm, specializing in the design and manufacture of superconducting quantum processors and a complementary software stack. Founded in 2013 by CEO Chad Rigetti, the company has developed comprehensive quantum systems that encompass everything from cryogenic hardware to control electronics. A key component of Rigetti’s offerings is its Quantum Cloud Services (QCS) platform, providing access to quantum processing units (QPUs) and enabling hybrid quantum-classical workflows through the cloud.

As interest in quantum computing continues to grow, Rigetti Computing remains a focal point for both investors and analysts, highlighting its potential for future advancements in the technology sector.