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Investing.com - Benchmark lowered its price target on Rigetti Computing Inc. (NASDAQ:RGTI) to $40.00 from $50.00 on Wednesday, while maintaining a Buy rating on the quantum computing company’s stock. Despite the reduction, Benchmark’s target remains above the current analyst range of $18-$51, with the consensus recommendation remaining a Strong Buy according to InvestingPro data.
The research firm cited a broader slowdown in momentum across the quantum technology landscape following Rigetti’s third-quarter results. Despite the target reduction, Benchmark remains positive on Rigetti’s technical progress, particularly highlighting the company’s chiplet-based architecture and continued roadmap execution. This optimism comes even as InvestingPro data shows the company is not profitable, with a negative EBITDA of $73 million for the last twelve months.
Benchmark noted that recent volatility across emerging technology and AI sectors has dampened near-term investor enthusiasm for quantum-related shares. The firm emphasized that Rigetti’s long-term investment case remains intact, supported by ongoing technical milestones, expanding strategic partnerships, and sustained public and private funding. One positive fundamental factor is that Rigetti holds more cash than debt on its balance sheet, with a strong current ratio of 39.22.
Rigetti’s stock has experienced significant price movement in recent months, appreciating considerably through mid-October before entering what Benchmark described as a consolidation phase. The shares remain up 107% year-to-date and 6% quarter-to-date, according to the research firm. InvestingPro data reveals an even more dramatic picture, with the stock delivering an extraordinary 2,007% return over the past year, though it has taken a 15.8% hit over the last week. InvestingPro analysis suggests the stock is currently trading above its Fair Value, placing it among overvalued technology companies.
Benchmark suggested that the recent pullback is healthy as volatility appears to be subsiding, and recommended that investors consider being opportunistic buyers on further weakness as the next catalysts develop for the quantum computing company. This recommendation comes despite InvestingPro’s overall Financial Health Score of 1.44, rated as "WEAK." For investors seeking deeper insights, Rigetti is among the 1,400+ US equities with comprehensive Pro Research Reports available exclusively on InvestingPro.
In other recent news, Rigetti Computing Inc reported its third-quarter earnings for 2025, revealing an earnings per share (EPS) of -$0.03. This figure exceeded analyst expectations, which had projected an EPS of -$0.05, resulting in a 40% positive surprise. Despite this EPS beat, the company’s revenue did not meet forecasts, recording $1.9 million compared to the anticipated $2.17 million. These results have highlighted concerns among investors, particularly regarding the revenue shortfall and increased operating expenses. No new merger activities have been reported for Rigetti Computing. Additionally, there have been no recent analyst upgrades or downgrades from firms concerning the company’s stock. These developments paint a complex picture for Rigetti Computing as it navigates its financial landscape.
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