After a significant pullback from its yearly peaks, Rigetti Computing’s stock is showing renewed signs of life. A notable advance on Friday, December 19, was fueled by fresh analyst coverage and the company’s substantial cash reserves. The central question for investors is whether this quantum computing specialist can sustain its recent stabilization.
Analyst Sentiment Provides a Catalyst
A primary driver behind the positive shift in market sentiment has been bullish commentary from financial research firms. Mizuho Securities recently initiated coverage on Rigetti with an “Outperform” rating, assigning a price target of $50. This projection implies a potential doubling from current trading levels. In a separate assessment, Wedbush Securities reaffirmed its optimistic stance, maintaining a $35 target.
The consensus among market analysts currently points to an average price target of approximately $29.30, accompanied by a “Moderate Buy” recommendation. This confidence is largely tied to the firm’s technological roadmap. Rigetti aims to deliver a system with over 100 qubits within the current year and plans to scale its capacity to more than 150 qubits by 2026.
Financial Performance and Liquidity Analysis
The company’s third-quarter results presented a mixed financial picture. Revenue declined by roughly 18 to 21 percent year-over-year to about $1.95 million. Company leadership attributed this decrease to delayed government contracts and the conclusion of the National Quantum Initiative, rather than any fundamental weakness in demand.
On a positive note, the loss per share came in at -$0.03, outperforming the anticipated -$0.05. For many investors, the balance sheet strength is a key consideration. Rigetti holds liquid assets of around $600 million. With an estimated annual cash burn rate between $80 and $85 million, this positions the company with a multi-year financial runway, alleviating immediate concerns over shareholder dilution.
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Trading Activity and Price Recovery
On Friday, December 19, Rigetti shares closed at $23.76, marking a gain of approximately 4.1 percent. The intraday high reached $24.03. Trading volume for the session was about 32 million shares, notably below the recent average of 70.5 million—a signal that the extreme volatility seen in prior months may be subsiding.
For context, the equity had reached a 52-week high of $58.15 in October before undergoing a substantial correction. The recent upward move originates from a level many market participants view as a technical support zone.
Institutional Investors Adjust Holdings
Activity among major funds indicates ongoing portfolio adjustments. Ancora Advisors established a new position in Rigetti during the third quarter, while Fifth Third Bancorp significantly increased its stake. Conversely, several institutional investors took profits during the rally that pushed shares toward $56. This pattern of buying and selling suggests that elevated volatility is likely to persist.
The immediate focus now shifts to whether the stock can reclaim the $25 threshold and begin a sustained move toward consensus price targets. The support level near $22 has held so far. The coming trading sessions will determine if this recovery evolves into more than just a short-term technical rebound.
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