The average target price of RGTI is 14 and suggests 0% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation suggests no significant price movement, up or down, in the next 12 months. The most optimistic analyst has a target price of 16.0. This translates into 13% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 14.0. This is equivalent to 1% downside potential in the worst case. 

Rigetti Computing, Inc. operates as an integrated systems company. The company builds quantum computers and the superconducting quantum processors that power them. Its machines are integrated into various public, private, or hybrid clouds through its Quantum Cloud Services platform. The company was founded in 2013 and is based in Berkeley, California.

Rigetti Computing, Inc.

Technology

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

RGTI reported revenue of USD 9mn in the last 12 months, down 15% from FY24. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 30% from FY24 to USD -0.68. Market expects EPS to reach USD -0.31 in FY25.

Over the past six months, the stock has consistently climbed, resulting in 491% total increase. When compared to its international counterparts in the same sector and industry (as shown above), the stock has exceeded their performances, leading by 496ppts in total. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months it exceeded the performance of this peer group by 498ppts and accelerated its growth by 45ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -2112.7% in the last 12 months, a decline from -504.6% in FY23. 

Historically, RGTI has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -1494.0%, down from -625.4% in FY23. 

Rigetti Computing, Inc. reported a return on equity (RoE) of -86.9% in the last 12 months, down from -57.8% in FY23. The market consensus projects an RoE of -45.2% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -64.1% in the last 12 months, a decrease from -41.3% in FY23. The market analysts predict that RoA will be -31.0% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -70.8%, below the peers. The consensus estimate for FY24 for RoCE is -34.9%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -4.4 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

RGTI has average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to slow historical revenue growth, bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation. We note low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, RGTI is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, RGTI is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. 

Rigetti Computing, Inc.

$ 14.19

2

Rigetti Computing, Inc.

$ 14.19

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 14.19

About

About

Rigetti Computing, Inc.

$ 14.19

2

Rigetti Computing, Inc.

$ 14.19

2

Risk factor

Profitability factor

Risk / Profitability

About

About

Risk factor

Profitability factor

$ 14.19

About

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