Shares of Rigetti Computing Inc (NASDAQ:RGTI) are in the spotlight Tuesday after an equity research firm adjusted its price target on the quantum computing company.
What To Know: Rigetti Computing stock traded as high as $46.18 on Tuesday following positive analyst coverage from Benchmark. Analyst David Williams maintained a Buy rating on Rigetti and raised the price target from $20 to $50, citing sector momentum and a potential re-rating ahead.
The Benchmark analyst noted that momentum across the quantum sector is accelerating overall, and that Rigetti has a solid base of government and private sector contracts that position the company favorably in the space. Williams also pointed to recent hardware sales indicating that the vertically integrated company is moving toward commercialization.
Quantum is seen as a strategic peer to AI, nuclear energy and space, where many advancements are made possible through government investment, the analyst said.
“Federal funding for quantum technologies is accelerating, driven by national defense priorities and concerns over ‘Q-Day,’ particularly as China intensifies its quantum investments,” Williams said in the note.
“The Trump administration has made quantum computing a core pillar of U.S. innovation and national security strategy, embedding it in the FY2027 federal R&D roadmap alongside AI.”
Rigetti’s modular design makes it more competitive in the space, Williams said, adding that it “enables the integration of smaller quantum chiplets into larger, more performant, scalable systems.”
The Benchmark analyst also highlighted the company’s healthy balance sheet, which includes $575 million in cash following Rigetti’s $350 million capital raise from June.
Williams believes that the quantum sector could be due for a re-rating despite recent gains. The Benchmark analyst sees “ample room” for further upside as quantum companies execute roadmaps, broaden use cases, and attract new commercial partners.
RGTI Price Action: Shares of Rigetti Computing were up 2.1% at $42.59 at the time of publication on Tuesday, according to Benzinga Pro.
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