07:00 AM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price at $65, on a P/E of 27x our 2025 EPS estimate, above peers to reflect RMBS's stable/recurring royalty business as well as near trough revenue for its buffer chip business. We reduce our 2024 EPS estimate to $2.01 from $2.07 and 2025 to $2.40 from $2.70. RMBS posts Q1 EPS of $0.45 vs. $0.42, beating the $0.44 consensus. Sales fell 10%, below expectations, hurt by lower product revenue but partly offset by higher royalty sales. We see product revenue gaining momentum in 2H 2024, as customer inventory conditions improve, while we remain excited about addressable market expansion for memory as demand for AI servers increase. We also see a more favorable mix towards DDR5, rising demand for accelerators with dedicated high bandwidth memory, and stability via RMBS's silicon IP business. We view RMBS's financial position as healthy, with net cash of $391M (no debt) and excess cash (FCF of +$180M in '24 and +$225M in '25) being used towards buybacks ($350M over the last three years).