Top Contributor: Jack Bass | Created when NASDAQ:AATI was $5.88 | Edit | History
• Q2 may exhibit some upside, driven by the ramp of Samsung’s Soul phone in Europe.
We are also hearing that LG is strong. AATI’s content in the Soul phone is around
$0.75 per unit, we believe, and Samsung plans to ship 20 million units this year.
• China demand is tepid but we believe new product ramps and inexpensive valuation
should offset. It is broadly known at this point that cell phone demand in China has
been weak. We believe this weakness is at both the low and high end, driven by
negative impact of inflation on the Chinese consumer. At worst, we believe soft China
demand could hamper AATI’s ability to upside Q2 estimates.
Cannacord Adams has a $8.00 price target - which is 22.5 times estimated 2008 EPS of .36