ATMI Inc. (NASDAQ: ATMI) seems to be on the receiving end of analyst ratings according to a majority of research firms. The semiconductor company is widely rated Sell by major analysts including UBS AG (NYSE:UBS) analysts, who downgraded the company’s stock from Neutral to Sell on July 23.
Nonetheless, ATMI investor can draw some bits of confidence in its stock if they choose to believe in Zacks Investment Research analyst rating on the stock. The research firm rated the stock as a Strong Buy with a price target of $20.88 per share. At the time of their rating, ATMI had closed on the previous market day at $20.48 per share. Currently, the stock has already beaten that target as it closed at $21.40 on Jan 2, 2013.
There are a number of reasons why the Danbury-based company could perform against the odds in 2013, but it remains to be seen whether or not, ATMI can beat analyst estimates and projections. The company missed analyst estimates in its most recent quarter results but reported nearly 80 percent growth in earnings as compared to 2011.
A Look at ATMI’s Customers
ATMI supplies its semiconductor materials to some of the world’s biggest technology companies including Intel Corporation (NASDAQ: INTC), which recently announced its intentions to venture into the production of smartphones memory chips. Intel wants to grow its business during the 2013 calendar year to rival QualComm Inc. (NASDAQ: QCOM) as it tries to regain its lost market share. ATMI Inc. (NASDAQ: ATMI) could benefit from the success of Intel thereby registering one of the best performances yet.
ATMI Inc. (NASDAQ:ATMI) also supplies products to Taiwan Semiconductor, one of the main suppliers of semiconductor products to the smartphones industry. This means that ATMI could benefit indirectly from the success of Apple Inc. (NASDAQ: AAPL), Nokia Corporation (NYSE: NOK), and Research In Motion Ltd. (NASDAQ: RIMM) with its BlackBerry devices among others. Indeed ATMI could benefit extensively from the awaited launch of BlackBerry10 smartphones at the end of January 2013.
The company also falls in the supply chain of some major U.S based technology companies like Texas Instruments Inc. (NASDAQ: TXN), International Business Machines Corp. (NYSE: IBM) and the Korean-based Hyundai Motor Company. Texas Instruments announced through a press release on December 27 that it would be demonstrating its innovative 3D time-of-flight image sensor chipset with SoftKinetic at CES 2013. This is yet another window of opportunity for ATMI.
A Look at ATMI’s Competitors
ATMI Inc. (NASDAQ:ATMI) faces competition from companies operating on the Automotive, Chemicals and Semiconductor industries. The most direct competitors include Air Products & Chemicals Inc. (NYSE:APD), Allentown-based chemicals and basic materials company, which provides atmospheric gases, process and specialty gases, performance materials, equipment, and services worldwide. It also faces competition from E. I. du Pont de Nemours and Company (NYSE:DD), which science and technology company that supplies basic materials in the chemicals industry.
The company also is believed to face direct competition from the Japanese automaker Mitsubishi Corporation, which together with its subsidiaries, engages in the general trading business worldwide.
ATMI Inc. (NASDAQ:ATMI) trailing 12-month operating margin stands at 12.88 percent with a net loss of 4.40 percent. Revenue stands at $397.65 million while the most recent quarter revenue grew by 14.60 percent year-over-year. Total cash from the most recent quarter stood at $130.92 million or $4.09 per share. The company’s price to book value stands at 1.34 times.