Atmel (NASDAQ:ATML) Positioned for Strong Long-Term Growth

With human interface technology expected to continue to be a growth segment, especially in tablets, UBS sees Atmel (NASDAQ:ATML) positioned to take advantage of that over the long term.

UBS says, "Based our 4-Jan sector note, 'Top 10 for ‘11 – Key Semi Sector Themes,' we cited human interface technology as an area that we expect should remain hot given its enabling capabilities to grow new markets, with tablets as the headliner. Post-CES, we follow up this call with our belief that not only is 2011 likely to show very strong growth for Atmel but also 2012. Thus, we raise our out-year estimates on our view 2010/11 represent the front end of longer-term growth. From these changes, we raise our price target to $16.50.

"We continue to expect 4Q10 sales/EPS of $435m/$0.16, in line with consensus, and 2011 sales/EPS estimates of $1,895m/$0.72. Reiterating our secular growth view for touch, we raise our F2012 sales/EPS estimates by 2%/3% to $2,180m/$0.90."

UBS maintains a "Buy" rating on Atmel (ATML), which closed Wednesday at $13.98, up $0.11, or 0.79 percent. UBS raised their price target on Atmel from $13.50 to $16.50.