Barclays Maintains an 'Overweight' on Atmel (ATML); Raised Touch Forecast as Well as Concerns

Barclays maintains an 'Overweight' on Atmel (NASDAQ: ATML) price target cut $2 to $12.00.

Barclays analyst says, "Atmel delivered Q3 results at the low-end of guidance (largely bolstered by touch) yet guided Q4 well below (-12-16% Q/Q) due to continued inventory adjustments in Industrial and a correction in tablets. Even with an expected reset in Q4, Atmel raised its full year touch guidance to $375M (from $350M). We are a bit concerned that guidance does not take into account any potential inventory corrections in touch (i.e., Samsung, Nokia (NYSE: NOK)), which others have acknowledged; however, we still believe ATML is a secular share gainer in MCUs (8bit & 32bit) beyond this reset, which will continue to drive improving profitability and cash generation."

"Our CY11 revenue/GAAP EPS move to $1,833M/$0.71 (from $1,892M/$0.71) and our CY12 estimates move to $1,731M/$0.53 (from $1921M/$0.67)."

For more ratings news on Atmel click here and for the rating history of Atmel click here.

Shares of Atmel closed at $10.29 yesterday.

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