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Research Alert: CFRA Maintains Hold Opinion On Shares Of Rambus Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Rambus Inc.
Jul 29, 2025 6:50 AM

09:30 AM EDT, 07/29/2025 (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 raise our 12-month target to $75 from $55 on higher revised P/E of 26.2x our 2026 EPS view, near the middle of RMBS's five-year historical forward average range, as we like its stable licensing business and see increasing product growth. After RMBS posted stronger-than-expected Q2 results, we tweak our '25 EPS estimate to $2.48 from $2.44 and keep '26 at $2.90. We believe RMBS is well-positioned to take advantage of ongoing secular prospects tied to AI servers, with new products to become a greater contributor to growth in the coming quarters. We anticipate it will benefit from the adoption of its industry-standard MRDIMM chipset in '26 to support greater memory performance requirements of next-generation server workloads. Also, we see a growing market opportunity surrounding AI PCs from the launch of its client memory module chipset. Despite our positive stance on the revenue trajectory (low-teens growth seen in the next two years), the valuation and limited margin upside lead us to maintain Hold.

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