Needham & Company Reiterates on Atmel on News That XSense Will Be Featured in HP Omni 10 Tablet

In a report published Wednesday, Needham & Company analyst Rajvindra S. Gill reiterated a Buy rating and $10.00 price target on

. In the report, Needham & Company noted, “Following XSense's recent Windows 8 certification, ATML yesterday acknowledged that HPs new Omni 10 tablet features both its touch controller as well as XSense. While we have been bullish on XSense given its various use cases from the beginning, we believe this should accelerate XSense adoption. We continue to expect a production ramp of XSense-enabled devices over the next 1 to 2 quarters and think ATML can fetch $10-15 for the xSense sensors and $2-3 for the touch controller. While volumes of the Omni 10 are likely to be insignificant in the near term, we are encouraged by this announcement, and are maintaining our Buy rating and $10 price target.” Atmel closed on Tuesday at $7.53.