FBR Comments On Atmel's First Analyst Day Since 2006

FBR Capital Markets has published a research report on Atmel Corporation ATML after the company hosted its first analyst day since CEO Steven Laub took the job in 2006. In the report, FBR writes, "Atmel now targets 54% gross margins and 25% operating margins by year-end 2013, up from its current margins of 51%/22%, a somewhat anemic 300-bp increase to its operating margins versus current performance and possibly disappointing some investors. Beyond this, we think Atmel's business is robust with microcontroller (MCU), maXTouch, and memory shipments likely to grow in 2H11 versus 1H11. Encouragingly, Atmel's lead times have declined to a now-normal six to eight weeks for most products. Atmel's channel inventories increased by almost one week in 1Q11 to about eight weeks, along with internal inventory growth, a concern among some investors." FBR Capital Markets maintains its Market Perform rating and $17 price target. Atmel Corporation closed yesterday at $14.15.