This Analyst Sees 61% Upside In Rambus As It's Well Positioned To Benefit From DRAM Demand

Rosenblatt analyst Kevin Cassidy initiated coverage of Rambus Inc RMBS with a Buy rating and $35 price target, implying a 60.55% upside.
Cassidy believes Rambus is well-positioned to benefit from the increasing demand for high-performance DRAM in data systems, particularly artificial intelligence applications.
The company's long-term IP Licensing contracts generate predictable and significant cash from operations, Cassidy says.
Cassidy finds the current valuation trading well below its peer group.
Separately the semiconductor solutions provider announced the exit of CFO Rahul Mathur on November 15 to pursue another opportunity. However, Rambus affirmed its Q3 FY21 outlook.
Rambus sees Q3 licensing billings of $59 million - $65 million. Rambus sees royalty revenue of $25 million - $31 million, product revenue of $34 million - $40 million, and contract and other revenue of $11 million - $17 million.
Price Action: RMBS shares traded higher by 3.05% at $22.47 in the market session on the last check Thursday.

Analyst Calendar