Image Source: Unsplash

Introduction

Rigetti (RGTI), soared 15.5% on Wednesday, July 2nd, and here’s what lit the fuse:

1. Analyst Upgrade: Investment bank Cantor Fitzgerald initiated coverage of the quantum computing stock with an outperform rating (i.e., buy) and a $15 price target -- which, if correct, implies Rigetti stock could go up another 20% over the next 12 months.
   • Cantor Fitzgerald acknowledges that such a forecast is speculative as quantum computing is likely years away from full-scale quantum capabilities and admits that Rigetti, trades at a steep multiple to any near-term revenue or earnings forecast given its $9 million in annual revenue (and no profits) and $3.6 billion market capitalization and, as such, won't turn a profit in the foreseeable future.
   • That being said, Cantor sees Rigetti’s leadership in superconducting quantum systems the most advanced and heavily invested subsector in quantum tech
2. Technical Momentum: The stock broke through resistance levels, triggering technical buying and short covering.
3. Broader Market Momentum: The 4 constituents in the MunAiMarkets Pure-Play Quantum Computing Portfolio all went up on Wednesday as follows: Rigetti Computing Inc. (+15.5%); IonQ Inc. (IONQ) (+11.6%); Quantum Computing Inc. (QUBT) (+10.8%) and D-Wave Quantum Inc. (QBTS) (+7.8%).

Conclusion

July 2nd’s rally was a classic case of analyst enthusiasm meeting market optimism.

More By This Author:

Cannabis MSO TerrAscend Jumped 11% On June 30th - Here's Why
Update: Pure-Play Outsourced Semiconductor Assembly And Test Portfolio Was UP 15.8% In June
Update: MunAIMarkets Model Pure-Play Semiconductor Suppliers Portfolio Up 15.8% In June; Now Up 23.6% YTD