Rosenblatt Securities initiated coverage on two quantum computing players, assigning Buy ratings to both Rigetti Computing and Quantum Computing Inc. The firm set a $40 price target for Rigetti, praising its modular scaling approach and in-house fabrication, while giving QCi a $22 target, highlighting its strong cash position and photonics strategy.

The endorsement comes despite Rigetti's technical hurdle. The company delayed its 108-qubit Cepheus system after missing a key fidelity target, reporting 99.0% instead of the desired 99.5%. Rosenblatt noted this places Rigetti behind peers like IBM and IQM, which have already demonstrated fidelities above 99.8%. Yet, the firm sees a credible path forward through existing hardware and error correction partnerships.

For QCi, the bull case rests on a diversified model and upcoming revenue. The company holds $1.6 billion in cash with no debt, and its pending acquisition of Luminar’s fabs could add roughly $25 million in annual income. Rosenblatt values QCi on its long-term potential in thin-film lithium niobate fabrication, a promising but early-stage technology.