- Needham analyst Quinn Bolton maintained Rigetti Computing Inc (NASDAQ: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.
Top Talent To Lead Two New US Marijuana Markets And Latest Key Hires In Cannabis Industry
As Benzinga Cannabis Capital Conference returns to Chicago this Sept 27-28 for its 17th edition, gathering top CEOs, investors and leaders in the cannabis
