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Investing.com - Evercore ISI raised its price target on Rambus Inc. (NASDAQ:RMBS) to $126.00 from $114.00 on Tuesday, while maintaining an Outperform rating on the semiconductor company. According to InvestingPro data, the stock has delivered an impressive 115% return over the past year, trading near its 52-week high.
The price target increase comes despite Rambus shares falling 20% in after-hours trading following the company’s June quarter earnings report, which showed EPS in line with Street expectations.
Rambus provided December quarter EPS guidance $0.02 above consensus, a positive indicator for the company’s near-term performance according to Evercore ISI.
The research firm noted that while Rambus’s P/E ratio has expanded by 70% (or 16 turns) since second-quarter earnings, shares currently trade at only 17 times Evercore’s calendar 2028 EPS estimates when discounted back.
Evercore ISI expects Rambus stock to maintain a premium P/E multiple given the company is only three years into what the firm views as a five-to-seven-year DDR5 cycle, with additional growth potential from its early-stage Companion Chip diversification strategy. InvestingPro data indicates strong financial health with a "GREAT" overall score, supported by robust cash flows and solid balance sheet metrics.
In other recent news, Rambus Inc. reported its Q3 2025 earnings, highlighting a mixed financial performance. The company achieved a revenue beat, but its earnings per share (EPS) fell short of expectations. Rambus posted an EPS of $0.44, significantly below the forecasted $0.63, representing a surprise of -30.16%. Despite the EPS miss, the company’s shares experienced a rise in aftermarket trading, suggesting investor confidence in its revenue results. These developments reflect a complex financial picture for Rambus, with contrasting signals from its earnings and revenue performance. Investors appear to remain optimistic about the company’s future prospects, as indicated by the positive market reaction.
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