WR Hambrecht cuts Rambus' (RMBS) estimate and maintains its hold rating.
Analyst Daniel Amir says fourth-quarter earnings per share is below estimates on higher litigation expenses. He recommends the long-term investors remain on the sidelines until there's some clarity on the litigation front, which he believes should occur in the first quarter when Infineon and Hynix trials begin in late February and late March, respectively.
For short-term investors, he sees a significant downside risk to Rambus stock ahead of the Infineon trial. He thinks that with the current judge in the Virginia court and recent negative developments in this case, its likely this trial could go against Rambus.
Amir cuts his 38 cents 2005 earnings per share estimate to 29 cents.