Each Segment Down Q/Q as Atmel Corp (ATML) Guided; Canaccord Genuity Cuts Price Target to $8.85
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Rating Summary:
9 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 10
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Canaccord Genuity maintained a Hold rating on Atmel (NASDAQ: ATML), and cut the price target to $8.85 (from $9.50), following the company's 3Q earnings results. Atmel reported Q3/15 results with below consensus sales of $286.5M and inline non-GAAP EPS of $0.08. Each segment was down Q/Q as guided.
Analyst Matthew Ramsay commented, "Atmel reported Q3/15 results with revenue below consensus amidst choppy macro environment. Management did not host a conference call given the pending merger with Dialog Semiconductor and issued guidance also below the consensus estimates. Overall, we believe both companies are still committed to this transaction despite the recent share price volatility and believe the merger diversifies Dialog's revenue stream, adds scale, and should yield compelling cost synergies once completed. The merger would position the combined company as the #1 supplier of mobile power management solutions in addition to having a strong IoT portfolio of 8- and 32-bit MCUs, connectivity, touch sensors and crypto memory to pursue broad IoT and automotive design wins. Despite a challenging macro and several recent disruptions in their business, we maintain our belief Atmel stand-alone has solid underlying MCU, automotive and broad IoT business fundamentals with many of the core assets necessary for sustained growth in the automotive, industrial, and Internetof-Things (IoT) markets and a significantly improved margin structure. We maintain our HOLD rating but lower our PT to $8.85 given Dialog's share decline."
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 $8.03 yesterday.
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