B. Riley downgraded Rigetti Computing (RGTI) to Neutral from Buy while maintaining its Buy ratings on IonQ (IONQ) and D-Wave Quantum (QBTS) ahead of the companies’ earnings results.
Rigetti Computing
The firm downgraded Rigetti’s (RGTI) stock to Neutral but raised the price target to $42 from $35.
The analysts said they like the company’s $11.5M in deals in September, which expand the commercial horizon as the path from 100-to-1,000-qubit systems, from 2025 to 2030, gets going.
The analysts noted that consensus estimates for the third quarter seem makeable, but they do not expect a fourth quarter guidance per norms, and caution that delayed U.S. government funding authorizations lend sales risk.
Operating cash burn of about $19M per quarter seems manageable with $572M in cash. After popping 190% year-to-date to lift the market cap to $14.3B, which discounts 52% of the 2030 to 2035 Total Addressable Market, or TAM, and with a significant percentage of long-term commercial success pricing in, the analysts said they have moved to the sidelines with Rigetti shares but with ongoing technology and commercial engagement attention.
Rigetti is slated to report its third quarter results on Nov. 10 after market close.
IonQ
The analysts kept their Buy rating on IonQ (IONQ) with a $100 price target.
“We believe end-to-end compute, networking, sensing, and space leadership is filling in and expect insights on recently-closed Vector Atomics and Oxford Ionics deal implications for 2030’s 2M physical/80K logical qubit roadmap and related ambitions,” said the analysts.
The analysts noted that quarterly revenues should at least meet third quarter and fourth quarter consensus estimates, which track to 2025’s $91M (+111% year-over-year) guidance.
IonQ is slated to report its third quarter results on Nov. 5 post market.
D-Wave Quantum
B. Riley maintained its buy rating on D-Wave (QBTS) with a $33 price target.
“Commercial mojo progressed with 10/15’s SQT €10M ($11.6M) Advantage2 QCaaS [quantum as a service] deal with upgrade-to-purchase options at $20-40M per system. On reporting, consensus 3Q25 and 4Q25 seem makeable with typical chunky deal risk as opex rises +15% in 2H25 for R&D and marketing,” said the analysts.
The analysts added that AEBITDA loss management remains prioritized as $828M in cash offers over four years of runway.
D-Wave is scheduled to report its third quarter results on Nov. 6 before markets open.