2023-08-11 11:10:50 ET
Analysts at Benchmark upgraded Rigetti Computing ( NASDAQ: RGTI ) to "Buy" from "Hold" following its second quarter results beat.
Shares of the company rose as much as 55.5% to a session high of $2.55 on Friday.
The ratings agency set a price target of $4 on the stock, citing solid results and saying that the company's strategic repositioning is demonstrating early success on multiple fronts.
RGTI on Thursday after the bell posted Q2 GAAP EPS of -$0.13, beating estimates by $0.04. Revenue of $3.33 million was +56.3% Y/Y and ahead of consensus expectations by $0.58 million.
Benchmark said they were specifically encouraged by the firm’s first QPU sale during the quarter and believe it will be a tipping point for further hardware sales, particularly on its economic price point and plug and play installation ease.
"Fundamentals are tracking to expectations, benefiting from the recent restructuring, which should provide sufficient runway for the next six to eight quarters. The company has been transparent in its liquidity position and continues to expect additional funds will be required to bridge to profitability," Benchmark analysts said in an August 11 report.
The new price target of $4 is based on an EV/Sales multiple of 7x on 2025E and 4.7x on 2026E revenue projections.
Quant and SA analysts rate the RGTI stock a "Hold" and Wall Street rates it a "Buy".
Stock has more than tripled in value YTD and has fallen 44.5% in the last 12 months.
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Benchmark ups Rigetti Computing to buy after "solid results"