UPDATE: Feltl and Company Initiates Atmel Corporation at Hold

Feltl and Company published a research report on Atmel Corporation

and initiated coverage on the company with a Hold rating and $6 price target. In the report, Feltl and Company wrote, "During FY09-FY11 ATML has delivered strong top-line growth, driven primarily by its touch IC product offerings. FY12 has seen touch IC revenue decline as the competitive landscape has expanded. ASP declines in touch ICs have accelerated with a shift in end market products toward low-end vs. prior high-end focus. As a percent of total revenue, we estimate touch equaled ~9% during FY10, climbing to ~21% by FY11. Our forecast for FY12/FY13 suggests within touch based revenue the smartphone touch IC contribution will see a significant decline during FY12/FY13 as a percent of overall touch. We estimate declining ASPs, negative customer mix, and expanding competitive landscape have limited future smartphone growth opportunities relative to prior years. Within tablets, Feltl and Company forecasts continued growth with near-term catalysts likely from Windows 8 touchscreen units. We estimate ATML likely remains a leading tablet touch IC provider in non-Apple tablet offerings. We believe non-touch MCUs are seeing stagnating growth." Atmel Corporation is currently trading down 2.57 percent from Tuesday's $6.03 closing price.