Why Rosenblatt Believes Rigetti Computing Shares Could Jump 60% from Current Levels

Rosenblatt Securities Initiates Coverage on Rigetti Computing with Bullish Outlook

Rosenblatt Securities has begun coverage of Rigetti Computing (RGTI), assigning the stock a “Buy” rating and setting a price target of $40. This projection suggests a potential upside of approximately 60% from current prices, reflecting growing optimism on Wall Street regarding the commercial prospects of quantum computing.

Analyst John McPeake pointed to Rigetti’s modular strategy for expanding quantum processors and its in-house manufacturing capabilities as significant strengths in the fast-moving quantum technology landscape.

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Despite some recent technical setbacks, such as delays in the rollout of its 108-qubit Cepheus system due to two-qubit gate error rates of 99.0%—below the 99.5% goal—Rigetti’s leadership remains confident these challenges will be resolved by the end of the first quarter.

While competitors like IBM and IQM have achieved higher error rates of 99.92% and 99.85% respectively, McPeake’s analysis suggests Rigetti’s core business remains attractive.

The company operates its own facility for producing quantum processing units and has deployed 18 machines, with six installed at client locations and the remaining 12 accessible through cloud services.

Rosenblatt highlights Rigetti’s unique approach to connecting multiple quantum processors using tunable couplers as a major technological advantage. The firm also points to Rigetti’s partnership with Riverlane, a quantum error correction specialist, as a potential driver for future growth.

Mizuho Securities has also initiated coverage on Rigetti with a “Buy” rating, underscoring the increasing investor interest in quantum computing stocks. According to Seeking Alpha, Rosenblatt has also started coverage of Quantum Computing with a $22 price target.

Is Rigetti Computing a Smart Investment Right Now?

Although Rigetti faces ongoing technical obstacles, the company has demonstrated strong performance on smaller systems, achieving 99.7% fidelity on its 9-qubit device and 99.6% on its 36-qubit system. This suggests that the main scaling issues are present in larger, more complex architectures.

Management has expressed confidence in their strategy to reach performance milestones, indicating plans for another chip iteration to address current issues. A strategic alliance with Nvidia could accelerate Rigetti’s path to commercialization. By joining Nvidia’s NVQLink platform, Rigetti gains access to low-latency connections between CPUs, GPUs, and quantum processors.

This integration supports the industry view that effective quantum computing requires close integration with classical supercomputing resources. Rigetti’s superconducting qubits, known for their fast gate speeds, are well-suited for these hybrid systems.

The collaboration builds on previous efforts where Rigetti’s Novera QPU was paired with Nvidia DGX Quantum, showcasing AI-driven calibration for quantum computers. This capability may prove essential as the sector advances toward logical qubits and commercially viable hybrid applications.

With 18 quantum machines deployed and a proprietary modular design, Rigetti remains well-positioned in the market, despite short-term execution risks.

RGTI Stock Price Forecast

Analysts following RGTI anticipate revenues to climb from $7.61 million in 2025 to $197 million by 2029. Free cash flow is projected to swing from a $75 million outflow in 2025 to a $112 million inflow in 2029. With nearly $450 million in cash and no debt, Rigetti is financially equipped to sustain its operations for at least the next three years.

Of the 11 analysts covering RGTI, seven rate it as a “Strong Buy,” one as a “Moderate Buy,” and three as a “Hold.” The consensus price target stands at $37.55, suggesting a 47% upside from current levels.