FBR Capital Downgrades Atmel (ATML) to Market Perform

February 26, 2013 6:45 AM EST Send to a Friend
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Price: $7.93 --0%

Rating Summary:
    18 Buy, 8 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 17 | New: 2
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FBR Capital downgraded Atmel (NASDAQ: ATML) from Outperform to Market Perform with a price target of $7.50 (from $8.00).

The analyst is concerned that: (1) the company is no longer the frontrunner to win the Galaxy S4 touch controller (although much of this is already assumed by the market); (2) some PC touch-related revenues are at risk as the industry moves in the next few months from a multichip solution with $7 to $8 of content to a single chip solution with $3 to $4 of content; (3) Atmel still has not released a controller with support for "in-cell" sensor technologies; and (4) valuation is stretched, with shares trading at 24x our 2013 EPS estimate and 15x our 2014 EPS estimate (adjusting for cash and stock compensation)."

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 $6.54 yesterday.


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