A.G. Edwards upgraded its investment recommendation on shares of Atmel (ATML) to strong buy from buy.
Analyst Chris Chaney says his $11 price target represents 40% upside to the current share price. He notes Atmel is trading at a steep discount to its peer group. Chaney believes this discount won't last into mid-2002, as the company introduces new 64 mbit flash chips. He thinks the fourth quarter will come in as expected, with results continuing to remain flat into the 2002 first quarter, with a recovery in the year's second half.