UPDATE: Jefferies Initiates Coverage on Rambus with Buy Rating, $13 PT on Moore Stress DRAM Upside

In a report published Tuesday, Jefferies analyst Sundeep Bajikar initiated coverage on

with a Buy rating and $13.00 price target. In the report, Jefferies noted, “DRAM industry fundamentals have changed dramatically and permanently in the last 12 months, and should translate into ~10% revenue upside and larger EPS upside for Rambus in CY14, driven primarily by Samsung and Elpida royalties (~45% of revs). We believe Rambus's technology pipeline is solid, and view its business model shift toward technology solution licensing favorably. Jefferies acted as Joint Bookrunner in Rambus' recent convertible bond offering.” Rambus closed on Monday at $8.53.