Rambus (RMBS) Shares Rip on Deal, Settlement with Broadcom (BRCM)

Rambus (Nasdaq: RMBS) is having a great pre-holiday-weekend session Friday. Shares are up over 16 percent after announcing late Thursday it entered into a licensing deal with Broadcom Corp. (Nasdaq: BRCM) for a range of integrated circuit products.

Additionally -- and certainly more up Rambus' alley -- the two companies settled outstanding litigation between them.

Terms of the licensing deal are for five years, with everything else about the deal confidential (until quarterly filings, mwahaha!).

Following the news, BWS Financial issued some comments while keeping a Buy rating and $23 price target on the stock, which its had since May 16th. The target suggests over 200 percent upside from current levels.

BWS sees the deal generating $40 million annually for Rambus. For more on the call by BWS, click here.

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