Rigetti Computing (RGTI) has been in the spotlight after B. Riley analyst Craig Ellis boosted his price target to a street-high $35 on Sept. 23. RGTI stock jumped 10% that day as a result. The firm’s bullish note pointed to accelerating progress in the quantum computing sector, including national labs shifting focus from pure research to commercialization, as justification. This new target is well above the consensus analyst forecast of around $21, reflecting confidence in Rigetti’s execution and market potential.
But should investors buy in at these levels? A look at Rigetti’s latest developments, finances, and stock history may shed light.
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About RGTI Stock
Based in California, Rigetti Computing is a key player in the quantum computing industry, pushing forward as quantum computing gets closer to a major turning point. The company recently launched Cepheus-1-36Q, a 36-qubit processor made from four connected chiplets. The processor cut two-qubit gate errors in half and reached 99.5% fidelity. Rigetti says this validates its proprietary chiplet-based scaling approach and brings it closer to “quantum advantage” with larger systems. The company remains on track to deliver a 100+ qubit chiplet system by the end of 2025. This shows Rigetti can grow its systems while keeping performance strong, something many experts thought was still years away.
Valued at $10 billion by market cap, RGTI’s stock rally has been extremely strong, with a one-year price performance surging more than 4100%, significantly outperforming the sector’s 15%. However, the stock has been extremely volatile, making sharp swings over the past few months, which highlights its speculative nature and sensitivity to news flow. Much of the movement has been tied to developments around funding, partnerships, and progress on advancing its quantum computing technology.
Due to its unprecedented rally, RGTI’s valuation has climbed to very high levels. Its price-to-sales (P/S) ratio now stands at 893, far above the sector median of 4. This makes the stock look expensive compared to its peers and suggests it may be overpriced in the current market.
[SRC] https://finance.yahoo.com/news/rigetti-computing-just-got-street-153821248.html
