Rigetti: The Stock Has Fallen, But Expectations Haven't (Rating Downgrade)

Rigetti Computing (RGTI) is downgraded to Sell due to valuation risks outweighing upside, despite federal support and strong revenue growth. RGTI trades at extreme valuation multiples—217x trailing sales and 141x forward sales—vastly exceeding sector medians, with profitability still distant. Recent revenue spikes are driven by lumpy system deliveries, but gross margins and cash flow remain weak, and future growth is already priced in.