Analyst believes Rigetti Computing stock will rise to $15 due to potential in quantum computing

Rigetti Computing (RGTI) shares are in focus as Cantor Fitzgerald analyst Troy Jensen initiates coverage with an “Overweight” rating, expecting shares to reach $15 due to the potential of quantum computing. The stock is down over 19% year-to-date but remains attractive for its leadership in superconducting systems and recent $35 million investment.

Rigetti Computing is advancing in quantum research initiatives and innovative approaches to scaling higher qubit count systems. The stock is trading at a high price-sales multiple of over 300x, but is cheaper compared to rivals like D-Wave with a P/S ratio of close to 500x. RGTI recorded $22 million of operating expenses in Q1 but ended with $238 million in cash.

Despite being up over 100% from its year-to-date low, Wall Street is optimistic about further gains for Rigetti stock. The consensus rating is a “Strong Buy” with a mean target of $14.40, indicating a potential upside of 17% from current levels. The company also generated nearly $43 million in net income in its latest quarter, making it less dependent on external financing for operations.

Read more at Yahoo Finance: Why This Analyst Thinks Rigetti Computing Stock Is Headed for $15