FBR Capital Markets Reiterates Outperform on Atmel as Recent Sell-Off Creates Opportunity
In a report published Wednesday, FBR Capital Markets analyst Christopher Rolland reiterated an Outperform rating and $8.25 price target on Atmel Corporation (NASDAQ: ATML).
In the report, FBR Capital Markets noted, “Importantly, we think PC touch attach rates are finally rising, evidenced by a substantial number of new touch PC designs at Sony, Lenovo, Asus, and Samsung launching in 4Q13/1Q14. In addition to notebook PCs, maXTouch, we understand, will be designed into a number of convertible Bay Trail PCs coming to market over the next few quarters. We believe PC touch is an essential part of the ATML story, as it provides an extremely profitable source of incremental earnings. Overall, we think the Street underestimates all, or a portion, of the following: (1) new sensor hub opportunities; (2) a strong cyclical recovery in the core MCU business, also benefiting the ASIC and RF units; (3) Win8 touch PC wins; and (4) growing XSense demand in late 2013 and, more importantly, in 2014.”
Atmel Corporation closed on Tuesday at $6.99.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.