Rambus' (RMBS) Buy Rating Reiterated at Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed its “buy” rating on Rambus and set a $165 price target, implying roughly 85.6% upside from the reported $88.91 share price. Analysts overall rate the stock a “Moderate Buy,” with a consensus target of $147.
• Rambus beat quarterly expectations, reporting $0.84 in EPS on $218.3 million in revenue versus estimates of $0.79 and $213.2 million, respectively. Analysts project full-year EPS of $2.52.
• Management cited strong AI- and data-center-driven demand and guided fourth-quarter revenue to $227 million-$233 million, though supply constraints and higher costs could pressure margins and temper investor enthusiasm.

Rambus (NASDAQ:RMBS - Get Free Report)'s stock had its "buy" rating reaffirmed by analysts at Rosenblatt Securities in a research note issued to investors on Tuesday, Benzinga reports. They presently have a $165.00 price target on the semiconductor company's stock. Rosenblatt Securities's price target suggests a potential upside of 85.58% from the stock's current price.

Several other research firms also recently weighed in on RMBS. Weiss Ratings restated a "hold (c+)" rating on shares of Rambus in a research report on Wednesday, September 2nd. Susquehanna reiterated a "neutral" rating and issued a $103.00 price objective (up from $100.00) on shares of Rambus in a report on Tuesday. Glj Research set a $165.00 price target on shares of Rambus in a research note on Tuesday, July 28th. Evercore reissued an "outperform" rating and issued a $150.00 price target on shares of Rambus in a research note on Tuesday. Finally, Benchmark reissued a "buy" rating on shares of Rambus in a research report on Tuesday, July 28th. Six research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Rambus presently has an average rating of "Moderate Buy" and a consensus price target of $147.00.

Rambus Price Performance

NASDAQ:RMBS traded down $1.41 during mid-day trading on Tuesday, hitting $88.91. The company's stock had a trading volume of 3,502,537 shares, compared to its average volume of 2,565,427. Rambus has a 1 year low of $77.89 and a 1 year high of $174.10. The stock has a market cap of $9.64 billion, a price-to-earnings ratio of 40.78 and a beta of 1.85. The business's fifty day moving average is $94.46 and its two-hundred day moving average is $107.99.

Rambus (NASDAQ:RMBS - Get Free Report) last posted its quarterly earnings results on Monday, October 26th. The semiconductor company reported $0.84 EPS for the quarter, beating the consensus estimate of $0.79 by $0.05. The company had revenue of $218.29 million for the quarter, compared to analyst estimates of $213.21 million. Rambus had a net margin of 31.69% and a return on equity of 17.89%. Analysts anticipate that Rambus will post 2.52 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of Rambus in the second quarter valued at about $1,853,645,000. EdgePoint Investment Group Inc. boosted its holdings in shares of Rambus by 38.5% in the first quarter. EdgePoint Investment Group Inc. now owns 1,947,742 shares of the semiconductor company's stock valued at $167,564,000 after acquiring an additional 541,056 shares in the last quarter. Swedbank AB boosted its holdings in shares of Rambus by 14.7% in the first quarter. Swedbank AB now owns 1,563,000 shares of the semiconductor company's stock valued at $134,465,000 after acquiring an additional 200,000 shares in the last quarter. Bank of America Corp DE boosted its holdings in shares of Rambus by 9.0% in the first quarter. Bank of America Corp DE now owns 1,361,570 shares of the semiconductor company's stock valued at $117,136,000 after acquiring an additional 111,928 shares in the last quarter. Finally, Bessemer Group Inc. boosted its holdings in shares of Rambus by 1,009.5% in the first quarter. Bessemer Group Inc. now owns 1,039,905 shares of the semiconductor company's stock valued at $89,463,000 after acquiring an additional 946,177 shares in the last quarter. 88.54% of the stock is currently owned by institutional investors and hedge funds.

Rambus News Summary

Here are the key news stories impacting Rambus this week:

• Positive Sentiment: Rambus reported record third-quarter revenue of $218.3 million, up 22% year over year, beating the roughly $213 million consensus estimate. Non-GAAP earnings were $0.84 per share, above expectations near $0.78-$0.79 and up from $0.63 a year earlier. Rambus Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Product revenue reached a record $114.3 million, increasing 22% year over year, while operating cash flow reached a record $102.5 million. Rambus also repurchased approximately $135 million of stock during the quarter, supporting per-share value. Rambus: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management cited accelerating AI-driven demand for memory chips and forecast fourth-quarter revenue of $227 million to $233 million, implying continued sequential growth. Rambus Q3 Earnings Call Highlights AI Demand and Supply Pressures
• Neutral Sentiment: The results reinforce Rambus’s exposure to data-center and AI infrastructure growth, but investors are weighing whether record revenue can be sustained as the market expands. Can Rambus Sustain Record Revenue as Data-Center Grows?
• Negative Sentiment: Supply constraints and higher costs are expected to pressure margins. In addition, fourth-quarter guidance, while higher sequentially, was viewed as relatively muted compared with elevated investor expectations, limiting the positive reaction to the earnings beat. Rambus Falls Despite Earnings Beat on Muted Guidance Outlook

About Rambus

Rambus Inc is a semiconductor technology company that develops and licenses intellectual property for memory and data-processing systems. Its technologies are designed to support higher bandwidth, improved performance, reliability and security across data centers, artificial intelligence and high-performance computing platforms, as well as other computing and communications applications.

The company offers memory interface products and intellectual property, including solutions for DDR5 and other advanced memory architectures, high-bandwidth memory, memory modules and associated system components.