JP Morgan Reiterates Neutral on Rambus

JP Morgan maintains its Neutral rating on Rambus (NASDAQ: RMBS) as Broadcom (NASDAQ: BRCM) settlement should buoy stock.

JP Morgan says, "Broadcom has signed a patent license agreement with Rambus, relating to IC technology. The license agreement is for five years. Terms were not disclosed; however, we believe this is a positive outcome for Rambus. We note that the settlement covers past claims, and probably yields a one-time payment that could lead to revenue and EPS upside in the current quarter. In addition, we expect quarterly recurring revenue of about $5 million to follow."

BRCM closed at $7.32 per share on Thursday.