- Needham analyst Quinn Bolton maintained Rigetti Computing Inc RGTI with a Buy and lowered the price target from $3 to $1.
- RGTI slightly beat 2022 sales expectations but provided no 2023 sales guidance. Sales of $6.1 million surpassed Bolton’s $3.4 million estimate and the $4.4 million consensus.
- FY22 sales of $13.1 million slightly surpassed guidance of $12 million – $13 million, consistently reiterated throughout the year.
- RGTI maintained a cash balance of $143 million at year-end or $1.00 of net cash per share.
- The new management team highlighted improving 2-qubit gate fidelity to 98% in 2023 and 99% in 2024; and managing the 2023 year-end cash balance to $65 million – $75 million (no additional funding until at least late-2024).
- The analyst thinks improving fidelity will attract willing investors when funding is needed, making the company a viable acquisition target.
- Bolton applauded management’s frankness about the new technological and operational strategies and believes these are necessary steps for the long run.
- The stock is trading at ~1/2 net cash levels.
- Price Action: RGTI shares traded higher by 4.36% at $0.57 on the last check Tuesday.
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