FBR Maintains Outperform, PT of $14 on Atmel

FBR reiterates its Outperform rating and price target of $14 on Atmel Corporation (NASDAQ: ATML) as business is likely tracking bottom half of guidance.

FBR says, “For 4Q11, we think Atmel's revenues are tracking in the lower half of revenue guidance of –12% to –16% QOQ ($403M–$422M), likely slightly worse than the Street's $413M, as continued supply chain inventory de-stocking and tighter monetary policy in China affect the business. We see maXTouch, MCU, and automotive shipments declining sequentially. Gross margins should fall about 200 bps QOQ toward 48%, in line with guidance, but could be worse if internal utilizations stepped down more than expected.”

ATML closed at $8.94 per share on Friday.