Needham & Company Cuts Price Target to $10 on Atmel Corp (ATML) Following 2Q15

Needham & Company maintained a Buy rating on Atmel (NASDAQ: ATML), and cut the price target to $10.00 (from $11.00), following 2Q15. Revenue of $306.3MM came in below $318.98MM consensus. Management guided revenue of $293MM lower than the Street's $335MM estimate.

Analyst Rajvindra Gill commented, "Atmel reported weaker than expected results and guidance as the company is seeing weakness in its maxTouch business and 8bit MCU inventory issues. We expect continued softness in the maxTouch business to result in significantly lower revenue in 3Q15 than previously anticipated. Despite this, the company has continued to execute cutting OpEx, partially offsetting top-line weakness. With CEO Steve Laub exiting by the end of August, we continue to believe ATML represents a likely acquisition candidate given its attractive product portfolio targeting the IoT (MCUs, connectivity, sensors, & security). We believe a potential acquirer could drive ATML's GM% to the mid-50% range and further reduce OpEx yielding earnings power in the $1+ range. Maintain Buy, Lower PT to $10."

For an analyst ratings summary and ratings history on Atmel click here. For more ratings news on Atmel click here.

Shares of Atmel closed at $8.55 yesterday.

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