Rigetti Computing in spotlight as Benchmark ups target

[A futuristic glowing quantum computer unit, 3d render]
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Rigetti Computing (NASDAQ:RGTI [https://seekingalpha.com/symbol/RGTI]) was in the spotlight on Tuesday as Benchmark upped its price target on the quantum computing company, citing strong execution, differentiated products and services and momentum in the sector.

Shares rose 4.5% in premarket trading.

“We are increasing our RGTI price target from $20 to $50 as momentum across the quantum sector accelerates and Rigetti’s execution continues to validate its long-term strategy,” analyst David Williams wrote in a note to clients. “We believe the company’s scalable superconducting architecture, improving qubit fidelity, and growing base of government and private-sector contracts position it as a credible contender in the race toward quantum advantage. The recent hardware sales signals adoption trends are beginning to shift toward commercialization, while the company’s cost-efficient [quantum processing unit] design and vertically integrated hardware stack provide meaningful leverage as demand for quantum inflects. In our view, the company’s strong IP portfolio provides meaningful competitive barriers to entry while also adding optionality as potential M&A target for larger players to accelerate their quantum roadmaps.”

Delving deeper, Williams added that investor interest in quantum computing has continued to build momentum. And while valuations are “remain difficult to anchor,” the long-term opportunity is enormous, even if some caution is warranted.

“That said, we view the sector’s investment cycle as still in its early innings, with multiple $1B+ capital raises underscoring institutional commitment and fueling continued investment appetite,” Williams added.

“For now, momentum remains on the side of investors, and as long as the industry continues to deliver measurable technical and commercial progress, we believe the quantum theme should remain resilient, even amid broader market volatility.”

MORE ON RIGETTI COMPUTING

* Rigetti Computing: I Caught The Falling Knife, And My Hand Never Felt Better! [https://seekingalpha.com/article/4828132-rigetti-computing-i-caught-falling-knife-and-my-hand-never-felt-better]
* Rigetti Computing: Time To Sell (Rating Downgrade) [https://seekingalpha.com/article/4826652-rigetti-computing-time-to-sell-rating-downgrade]
* Rigetti Computing: Enormous Potential, But Equally Substantial Risks [https://seekingalpha.com/article/4826510-rigetti-computing-enormous-potential-but-equally-substantial-risks-hold]
* SA Asks: Which tech companies could be acquired near term? [https://seekingalpha.com/news/4501038-sa-asks-which-tech-companies-could-be-acquired-near-term]
* Rigetti secures $5.7M in orders for two upgradeable Novera quantum systems [https://seekingalpha.com/news/4500159-rigetti-secures-57m-in-orders-for-two-upgradeable-novera-quantum-systems]