FBR Capital Maintains a 'Market Perform' on Atmel (ATML); Analyst Day Highlights Strategies and New Margin Targets
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Price: $8.14 --0%
Rating Summary:
9 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains a 'Market Perform' on Atmel (NASDAQ: ATML), PT $17.
FBR analyst says, "Atmel hosted its first analyst day since CEO Laub took the reins in mid 2006, reviewing key segment strategies and raising its financial margin targets. Indeed, Atmel now targets 54% gross margins and 25% operating margins by year-end 2013, up from its current margins of 51%/22%, a somewhat anemic 300-bp increase to its operating margins versus current performance and possibly disappointing some investors. Beyond this, we think Atmel's business is robust with microcontroller (MCU), maXTouch, and memory shipments likely to grow in 2H11 versus 1H11. Encouragingly, Atmel’s lead times have declined to a now-normal six to eight weeks for most products. Atmel’s channel inventories increased by almost one week in 1Q11 to about eight weeks, along with internal inventory growth, a concern among some investors. Atmel is likely building long life inventory to support 2H11 demand, with the rise in 1Q11 distribution inventory driving about 3% revenue growth (almost one week of growth is about a 12% revenue adder, and Atmel is about 25% "sell-in" revenue recognition), a modest contribution overall. Beyond the near term, we think Atmel is well positioned for several more years of outsized top-line growth given vastly increasing R&D expenditures in recent quarters."
For more ratings news on Atmel click here and for the rating history of Atmel click here.
Shares of Atmel closed at $14.16 yesterday.
FBR analyst says, "Atmel hosted its first analyst day since CEO Laub took the reins in mid 2006, reviewing key segment strategies and raising its financial margin targets. Indeed, Atmel now targets 54% gross margins and 25% operating margins by year-end 2013, up from its current margins of 51%/22%, a somewhat anemic 300-bp increase to its operating margins versus current performance and possibly disappointing some investors. Beyond this, we think Atmel's business is robust with microcontroller (MCU), maXTouch, and memory shipments likely to grow in 2H11 versus 1H11. Encouragingly, Atmel’s lead times have declined to a now-normal six to eight weeks for most products. Atmel’s channel inventories increased by almost one week in 1Q11 to about eight weeks, along with internal inventory growth, a concern among some investors. Atmel is likely building long life inventory to support 2H11 demand, with the rise in 1Q11 distribution inventory driving about 3% revenue growth (almost one week of growth is about a 12% revenue adder, and Atmel is about 25% "sell-in" revenue recognition), a modest contribution overall. Beyond the near term, we think Atmel is well positioned for several more years of outsized top-line growth given vastly increasing R&D expenditures in recent quarters."
For more ratings news on Atmel click here and for the rating history of Atmel click here.
Shares of Atmel closed at $14.16 yesterday.
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