Rambus Inc. (RMBS) PT Raised to $75 at Susquehanna

Susquehanna analyst Mehdi Hosseini raised the price target on Rambus Inc. (NASDAQ: RMBS) to $75.00 (from $70.00) while maintaining a Positive rating.

The analyst commented: "RMBS reported Mar-Q revenue/EPS of $170M/$0.60, exceeding expectations of $167M/$0.58 and driven by product revenue, including incremental revenues from companion chips, and Silicon IP. In fact, silicon IP revenue grew over 30% Q/Q, supported by easier comps and rising demand for HBM4 and PCIe7. The EPS guide of $0.63 is a penny above our expectation and in line with consensus. Management believes it continues to gain share in DDR5 RCDs, now capturing over 40% of the market. Meanwhile, companion chip contribution is increasing which is expected to account for high single digit of product revenue in 2H25 which is up from low single digit in 1H25. As highlighted in our expert call on 07/21 (link), we believe there has been some pull-in of traditional server builds from 2H into 1H, which could weigh on RCD revenue growth in 2H25. However, we think the transition from Gen2 to Gen3 DDR5 RCD could drive DD growth thanks to higher pricing and help offset potential volume softness, though the timing of this transition remains uncertain. We’re also encouraged by the ramp in companion chips, which are expected to contribute roughly half of product revenue growth in 3Q25, with further upside potential. All in all, our L-T thesis remains intact, with an EPS opportunity of $3+."

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