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Investing.com - Mizuho lowered its price target on Rigetti Computing Inc. (NASDAQ:RGTI) to $33 from $43 while maintaining an Outperform rating. The stock currently trades at $14.20, down 76% from its 52-week high of $58.15, and according to InvestingPro analysis, appears overvalued relative to its Fair Value.
The firm updated its view on the quantum computing sector following recent industry announcements and developments. Mizuho noted that NVQLink is gaining traction with multiple players, improving Quantum Error Correction and enabling hybrid workflows combining quantum processing units, graphics processing units, and central processing units.
The race toward more than 200 logical qubits is intensifying as companies continue ramping research and development spending. The most ambitious roadmaps point to more than 200 logical qubits in 2027-2029, according to the firm.
The United Kingdom is adding approximately $2.7 billion in quantum computing funding over roughly four years. Rigetti plans to invest approximately $100 million in the UK.
Canada is investing approximately $1 billion into quantum computing for defense, adding to $2.7 billion in National Quantum Initiative and CHIPS funding extending to 2034. Mizuho also lowered price targets on D-Wave Quantum Inc. to $31 from $40 and IonQ Inc. to $61 from $80, maintaining Outperform ratings on both.InvestingPro subscribers have access to over 10 additional exclusive tips for RGTI, including detailed analysis of the company’s financial health and comprehensive Pro Research Reports covering 1,400+ US equities.
In other recent news, Rigetti Computing Inc. reported its fourth-quarter 2025 earnings, which met earnings per share expectations but fell short of revenue forecasts. The company posted an EPS of -$0.03, aligning with analyst projections, while revenue was $1.9 million, below the anticipated $2.32 million. Despite the revenue miss, analysts from Rosenblatt reiterated a Buy rating with a $40.00 price target, citing good machine sales momentum and slightly higher gross margins. Rosenblatt also increased its 2026 revenue estimate by 8%. Meanwhile, Needham adjusted its price target for Rigetti Computing to $31 from $51, maintaining a Buy rating. Needham raised its fiscal 2026 revenue estimate to $21.0 million from $18.5 million, driven by increased system sales. These developments reflect ongoing investor interest and analyst confidence in Rigetti’s strategic advancements in the quantum computing sector.
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