Bull of the Day: Atmel Corp. - Bull of the Day

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Atmel Corp. ( ATML ) reported strong third quarter results with healthy earnings that exceeded the Zacks Consensus Estimate. The company is investing more in its core microcontroller business to augment its margins and overall growth going forward. Fast-growing touchsensing technology is one of the major growth drivers for Atmel's microcontroller business.

The company's strong relationships with Nokia, Motorola, HTC and Samsung are also expected to bolster its business in the future. We are changing our long-term recommendation on the stock from Neutral to Outperform based on the long-term growth perspective.

The stock is currently trading at a P/E multiple of 27.2x, identical with the industry average and the S&P 500 multiple of 15.0x. Our target price of $8.50 reflecting a P/E of 35.4x factors aligns with our Outperform recommendation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

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