UPDATE: Goldman Sachs Downgrades Atmel to Neutral On Limited Visibility

Goldman Sachs reduced its rating on Atmel Corporation ATML from Buy to Neutral an reduced its price target to $6.50. Goldman Sachs commented, "We have been wrong on the stock and believe there is limited visibility into Atmel's fundamental recovery post two disappointing quarters: (1) A recovery in the core MCU business has likely been pushed into 2013 given a pause in the cyclical recovery in industrial/automotive post a significant distributor inventory correction. (2) Price pressure and share loss in smartphone touch controllers is more than offsetting unit growth, and Windows tablets are an unproven opportunity." Atmel Corporation closed at $5.74 on Monday.