Citi Calls Rambus Inc. 'Top Pick,' Sees Big License Deal Pending

Rambus Inc.

is likely to soon sign a major license deal, according to an analyst who highlighted the company in a research note Thursday. The Sunnyvale, California memory chip maker gained about 2 percent recently, trading at $15.17. Intel Corporation

will probably sign a deal with Rambus this year, according to Citi's Atif Malik who moved Rambus to the number-one ranking on Citi's list of stocks in the semiconductor sector. Malik also ranked Marvell Technology Group Ltd.

as "our least favored Sell-rated pick," citing a weak sales outlook. Malik launched coverage on Marvell in May with a Sell rating and $13 target, and had predicted in a June 10 note that Rambus will sign an Intel license agreement this year. Rambus' sponsorship of an Intel development forum in August, plus its earlier hints at a "summer announcement" both suggest an upcoming deal, according to Malik's June 10 note, which included a $17.50 target on Rambus. Rambus Chief Executive Ronald D. Black told analysts in April the company would release details later this summer on its CryptoManager memory architecture, which is targeted at semiconductor companies. As for Marvell, Malik thinks weak demand for desktop and notebook computers put sales for its June quarter at risk. Analysts on average expect Marvell's sales for the period will fall more than 24 percent to $961.5 million. Also on Malik's list: Buy-rated Fairchild Semiconductor Intl Inc

is in the number-two slot with a $23 target after Rambus, followed by Silicon Laboratories

, also at Buy with a $61 target. Intersil Corp

is rated Neutral at number four, with a target of $14, with Marvell bringing up the rear.