UPDATE: Topeka Capital Markets Initiates Coverage on Rambus, Comments That Company is 'In Transition'

In a report published on Thursday, analysts at Topeka Capital Markets initiated coverage for Rambus (NASDAQ: RMBS) with a Buy rating and a $10 PT.

In the report, lead analyst Suji De Silva commented that, "We are initiating coverage of Rambus Inc. with a Buy rating and a $10.00 price target. We believe recent execution improvement under new management will raise valuation to a level more appropriate for high-margin IP businesses (i.e., GM >90%, OM>30%). We also expect secular EPS growth, reflecting a broadening set of growth opportunities, improving licensing traction, and operating leverage with growth."

Rambus was up 0.50 percent on Thursday and closed the day at $8.03