Benchmark Upgrades Rigetti Computing Inc. (RGTI) to Buy, 'First QPU Sale and Technical Progress Drives Confidence'
Benchmark analyst David Williams upgraded Rigetti Computing Inc. (NASDAQ: RGTI) from Hold to Buy with a price target of $4.00.
The analyst comments "We are upgrading RGTI to Buy from Hold and setting a $4 PT following solid 2Q results as the strategic re-positioning is demonstrating early success on multiple fronts. We are specifically encouraged by the firm’s first QPU sale during the quarter, which we believe will be a tipping point for further hardware sales, particularly on its economic price point and plug and play installation ease. In our view, the sale is a clear indication of the accelerating customer interest and a validation of the technology. The new leadership team has remained disciplined in driving qubit performance ahead of further volume expansion and continues to make strides toward achieving the targeted 99% fidelity on Ankaa-2 system in 2024. The 84Q platform is scheduled to be deployed and available in 4Q23, which is expected to reach two qubit median fidelity of 98%, a step function improvement in fidelity and gate speed vs the prior Aspen 80Q system (95%). Fundamentals are tracking to expectations, benefitting from the recent restructuring which should provide sufficient runway to for the next six to eight quarters. The company has been transparent in its liquidity position and continues to expect additional funds will be required to bridge to profitability. However, on the current technical trajectory, we think RGTI will be positioned to demonstrate narrow quantum advantage around the same time, which should ease the pathway to raise capital. With increased confidence in the team’s execution, technical progress, and better clarity of the path to commercialization, our conviction in RGTI is meaningfully improved."
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Shares of Rigetti Computing Inc. closed at $1.64 yesterday.