Rigetti Computing (RGTI) shares are in focus today, July 2, after Troy Jensen – a Cantor Fitzgerald analyst – assumed coverage of the quantum technology company with an “Overweight” rating.
Jensen expects RGTI shares to hit $15 in the coming months as quantum computing “remains one of the most coveted technical milestones with enormous economic implications.”
At the time of writing, Rigetti Computing stock is down more than 19% year-to-date.
Jensen recommends owning RGTI stock for exposure to quantum computing as it’s the leader in superconducting systems, which he said was the most advanced and heavily invested subsector of quantum technology.
Rigetti is strongly positioned to accelerate its work on superconducting systems following a recent $35 million equity investment from Quana Computer – the analyst told clients in his research note today.
Investors could take heart in the fact that RGTI is working with governments on both sides of the Atlantic on several high-impact quantum research initiatives as well.
The quantum computing stock remains attractive also because it’s “making strides in developing innovative approaches to scaling to higher qubit count systems,” according to its chief executive Subodh Kulkarni.
Rigetti Computing stock is currently going for a premium price-sales multiple of well over 300x.
Still, Troy Jensen favours buying it at current levels as it’s, nonetheless, cheaper to own than rivals, including D-Wave (QBTS), with a P/S ratio of close to 500x, according to Barchart.
RGTI recorded about $22 million of operating expenses in Q1 but ended the quarter with roughly $238 million in cash, cash equivalents, and available-for-sale investments – which means it’s not immediately dependent on external financing to sustain operations.
In fact, RGTI shares may be worth owning since the Nasdaq-listed firm even generated nearly $43 million of net income in its latest reported quarter.
Rigetti stock is currently up more than 100% versus its year-to-date low – but Wall Street remains convinced that it can extend gains further moving forward.
