Rigetti Computing (RGTI) Stock Forecast & Price Target

Rigetti Computing Inc. has demonstrated remarkable momentum in the market, with its stock volume increasing by 67% in the last month, greatly outpacing the sector average. Financially, the company's liquidity position is robust, with cash, cash equivalents, and available-for-sale securities reaching $217.2 million by year-end, significantly enhanced by $153.3 million in equity offerings, which supports its operational stability. Furthermore, Rigetti's stock has appreciated by 136% recently, outperforming its peers, amid a growing quantum computing ecosystem buoyed by rising venture capital and government funding, contributing to a positive outlook for the company.

Rigetti Computing experienced a decline in revenue, generating $10.8 million in 2024, which represents a 10% decrease from 2023 and falls short of consensus estimates, primarily due to lower recognized contract revenues. The company's post-merger performance has been hampered by challenges such as a capital shortfall, execution delays, and heightened investor expectations amidst an environment of rising global interest rates and reduced economic growth forecasts. Additionally, like many newly public companies in emerging sectors, Rigetti faced difficulties due to lower-than-expected capital proceeds from its merger, exacerbated by significant shareholder redemptions and concerns regarding sustainable growth and margin expansion.