In a note to investors, FBR analyst Christopher Rolland said that about 32% of publicly traded U.S. semiconductor companies will be acquired this year if the current rate of consolidation in the market continues, according to Benzinga.
Atmel is his top acquisition candidate in the current semiconductor market, according to Rolland. The analyst said the company has an "excellent" MCU product portfolio with two architectures and is less R&D inventive than other companies.
Rolland noted that Atmel has one of the oldest and most efficient fabs globally which can offer a potential acquirer "excellent gross margin accretion.
About 7.8 million shares of Atmel were traded by 12:29 p.m. Thursday, above the company's average trading volume of about 5.1 million shares a day.
TheStreet Ratings team rates ATMEL CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ATMEL CORP (ATML) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."