Imperial Capital Raises Price Target For Atmel

In a research note released Monday, Imperial Capital analyst Ashok Kumar maintained an Outperform rating on Atmel (NASDAQ: ATML) and increased the one-year price target from $10.00 to $11.00, primarily as a result of strength in industrial and consumer markets.

Kumar said demand and bookings have continued to increase. The analyst is expecting Atmel to report June quarter revenues toward the higher end of its guidance range of $348 to $364 million.

In addition, gross margins should continue to improve from cost downs, manufacturing efficiencies, and take-or-pay rolloff.

For the third quarter of 2014, revenue guidance is estimated to be at three percent quarter-on-quarter.

Shares of the company are down one percent on Monday.