Why Rosenblatt Thinks Rigetti Computing Stock Can Soar 60% from Here

Core Viewpoint - Rosenblatt Securities initiated coverage of Rigetti Computing (RGTI) with a "Buy" rating and a price target of $40, indicating a potential upside of approximately 60% as interest in quantum computing grows [1] Company Overview - Rigetti Computing employs a modular approach to scaling quantum processors and possesses internal fabrication capabilities, which are seen as competitive advantages in the quantum computing sector [1] - The company operates its own quantum processing unit fabrication facility and has an installed base of 18 machines, with 6 deployed at customer sites and 12 accessible via cloud platforms [3] Technical Challenges - Rigetti announced delays in its 108-qubit Cepheus system due to two-qubit gate error rates of 99.0%, which are below the target of 99.5% [2] - Despite these challenges, management is confident in resolving the issues by the end of the first quarter [3] Competitive Landscape - Competitors such as IBM and IQM have achieved better error rates of 99.92% and 99.85%, respectively, but Rigetti's fundamentals remain strong [3] - Rigetti's ability to network multiple quantum processors through tunable couplers is viewed as a key technological differentiator [4] Market Sentiment - Mizuho Securities also issued a "Buy" rating, reflecting increasing investor interest in quantum computing stocks [5] - Rigetti has reported promising results on smaller systems, achieving 99.7% fidelity on its 9-qubit system and 99.6% on its 36-qubit configuration, indicating that scaling challenges are primarily in larger architectures [7]