TLDR
- B.Riley upgraded Rigetti Computing (RGTI) to Buy rating, maintaining $35 price target
- The upgrade follows an $8.4 million quantum computer order from India’s C-DAC
- India contract represents 36-48% of Wall Street’s 2025 revenue forecasts for the company
- Analyst sees 46% upside potential from current price of $23.67
- Rigetti’s total trailing twelve-month revenue was just $7.49 million before this order
Rigetti Computing earned a rating upgrade from B.Riley on Thursday. The analyst moved the quantum computing stock from Neutral to Buy.
The firm maintained its $35 price target. Shares currently trade at $23.67, giving the target 46% upside potential.
B.Riley’s move comes after Rigetti secured an $8.4 million order from India’s Centre for Development of Advanced Computing. The deal calls for delivery of a 108-qubit quantum computer to C-DAC’s Bengaluru center during the second half of 2026.
The contract carries outsized importance for Rigetti’s financial picture. The company generated only $7.49 million in revenue over the last twelve months. B.Riley cited FactSet data showing the India order equals 48% of the low-end revenue estimate and 36% of the high-end estimate for calendar year 2025.
Rating History and Valuation Logic
B.Riley initially gave Rigetti a Buy rating when coverage began in July 2025. The firm downgraded to Neutral in November as shares approached $39. Valuation stretched too far at that level.
The analyst pointed to “enhanced full-year estimate attainment visibility” as justification for the renewed Buy rating. The India contract provides tangible revenue support for 2025 projections.
B.Riley’s $35 target assumes shares discount 35% of the quantum computing addressable market from 2030 through 2035. The stock trades with a beta of 1.71, indicating heightened volatility.
Financial Position and Competing Analyst Views
Rigetti maintains more cash than debt on its books. Liquidity remains strong despite ongoing losses.
The company reported negative EBITDA of $73.01 million. Profitability remains elusive as development spending continues.
Rigetti recently adjusted its product roadmap. The Cepheus-1-108Q quantum system launch shifted from early 2026 to the end of the first quarter. The company cited additional testing and optimization requirements for the delay.
Several other analysts weighed in on Rigetti recently. Rosenblatt Securities started coverage with a Buy rating and $40 target, expressing confidence in the qubit scaling strategy. Wedbush initiated with an Outperform rating and $35 target, emphasizing Rigetti’s long track record in quantum computing.
Jefferies took a more measured approach. That firm began coverage with a Hold rating and $30 target, noting execution risks and revenue composition concerns despite acknowledging quantum computing’s potential benefits.
The stock has climbed 6.86% year-to-date. Daily volume averages 44.9 million shares. Market cap reached $8.25 billion.
Rigetti operates its own Fab-1 manufacturing facility for quantum chip production. The company’s chiplet-based architecture and fast superconducting gates differentiate its technology approach. These factors contributed to analysts raising valuation models after the India contract announcement.
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