Collins Stewart Rates Atmel Buy With $13 PT
November 30, 2011 12:43 PM
Shares of integrated circuit maker Atmel (Nasdaq: ATML) are up 3.5% after Collins Stewart reiterated a buy rating and $13 price target on the stock. That target implies upside of more than 40% from where the shares currently trade. Collins Stewart lowered its price target on Atmel to $13 from $15 earlier this month.
“Our $13 price target is based on 15.5x our 2012 NG EPS estimate of$0.84.Our 15.5x forward P/E multiple reflects a slight premium over its touch IC peers given the company's leadership position within the capacitive touch industry. Risks include 1) Competitive market share loss; 2) Pricing pressures;3)Inability to remain competitive as capacitive touch, microcontrollers, and nonvolatile memory markets are highly competitive,” Collins Stewart said in a note.
