BWS Financial Maintains a 'Buy' on Rambus (RMBS); Patent Settlement Affirms Value
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Price: $91.24 -0.99%
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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BWS Financial maintains a 'Buy' on Rambus Inc. (NASDAQ: RMBS) price target of $23.00.
BWS analyst says, "Rambus has reached a settlement with Broadcom (Nasdaq: BRCM). The deal comes as the two parties were submersed in a dispute at the ITC over patents RMBS was asserting were infringed...Assuming, the terms are similar to others, we estimate the deal generating $40 million annually for RMBS...The settlement removes one more party from an ITC decision that is expected on January 4, 2012. Freescale Semiconductor (NYSE: FSL) reached terms with RMBS several months ago."
"The announcement of RMBS reaching a deal with BRCM comes at a time when investors doubted RMBS’ patent portfolio. We continue to believe there is value in owning shares of RMBS for the patents the Company owns and collects revenues from...At $8 much of the negativity that could surface is already priced in. We like RMBS at these levels and would recommend buying it with the outlook of a volatile event coming up on January 4."
For an analyst ratings summary and ratings history on Rambus Inc. click here. For more ratings news on Rambus Inc. click here.
Shares of Rambus Inc. closed at $7.17 yesterday.
BWS analyst says, "Rambus has reached a settlement with Broadcom (Nasdaq: BRCM). The deal comes as the two parties were submersed in a dispute at the ITC over patents RMBS was asserting were infringed...Assuming, the terms are similar to others, we estimate the deal generating $40 million annually for RMBS...The settlement removes one more party from an ITC decision that is expected on January 4, 2012. Freescale Semiconductor (NYSE: FSL) reached terms with RMBS several months ago."
"The announcement of RMBS reaching a deal with BRCM comes at a time when investors doubted RMBS’ patent portfolio. We continue to believe there is value in owning shares of RMBS for the patents the Company owns and collects revenues from...At $8 much of the negativity that could surface is already priced in. We like RMBS at these levels and would recommend buying it with the outlook of a volatile event coming up on January 4."
For an analyst ratings summary and ratings history on Rambus Inc. click here. For more ratings news on Rambus Inc. click here.
Shares of Rambus Inc. closed at $7.17 yesterday.
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