UPDATE: Bank Of America Downgrades Atmel On 'Muted Growth Prospects'

In a note published Thursday morning, Bank of America analyst Vivek Arya downgraded shares of Amtel ATML from Buy to Neutral and lowered the price target from $10 to $9.

Looking forward, Arya noted concerns regarding:

• Continued volatility from smartphones/tablet touch IC
• Inconsistent results and guidance compared to Street expectations
• Limited probability of accelerating buyback or initiating a dividend
• Limited room for multiple expansion
• A higher 2016 tax-rate which could constrain EPS growth

In conjunction with the downgrade, Arya has lowered his pro-forma EPS estimates for 2014-2016 from $0.42, $0.61, and $0.67 to $0.39, $0.58, and $0.60.