In a report released yesterday, Aaron Rakers from Wells Fargo maintained a Buy rating on Rambus (RMBS – Research Report), with a price target of $73.00.
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Aaron Rakers has given his Buy rating due to a combination of factors that bolster Rambus’s growth prospects. The company’s fourth-quarter results and forward guidance have reinforced a positive outlook, particularly in the domain of data center memory expansion, which is anticipated to support a pathway to over $4 EPS. Additionally, the growth potential in companion chips is seen as a significant upcoming catalyst, with expectations of it becoming a more prominent revenue driver.
Rambus’s valuation has been strong, significantly outperforming its peers. The analyst notes that despite the high valuation, the continued expansion in MR-DIMM content and increased estimates, particularly in the coming years, justify the Buy rating. Looking forward, the anticipated growth in MR-DIMMs, although not expected to impact fundamentals immediately in 2025, is considered a positive sentiment driver for future prospects, aligning with a projected increase in content opportunities.
According to TipRanks, Rakers is a top 100 analyst with an average return of 23.4% and a 64.57% success rate. Rakers covers the Technology sector, focusing on stocks such as Western Digital, Nvidia, and Seagate Tech.