ATMI upgraded to “strong buy”

01/05/04 - Adams Harkness & Hill

NEW YORK, January 5 (New Ratings) – Analyst Avinash Kant of Adams Harkness & Hill upgrades ATMI Inc (ATMI) from “market perform” to “strong buy.” The target price is set to $34.

Shares of ATMI Inc, a US-based semiconductor material manufacturer, are currently trading at $23.40.

According to Adams Harkness & Hill's research note published this morning, ATMI intends to transform itself into a pure play materials company by the end of 2004. The company recently announced its intention to exit its unprofitable technology business in the near future, the analyst says.

ATMI is poised to capitalize on the steadily recovering global semiconductor industry, given its leadership position in the semiconductor materials segment, the analyst believes. The strong global demand for semiconductor wafers would boost the company's earnings during 2004 and 2005, the analyst says. The company's stock is attractively valued as compared to its peers and the company offers steady earnings growth in the long term, Adams Harkness & Hill reports.

The EPS estimates for 2003 and 2004 are -$0.20 and $0.40, respectively. The P/E estimate for 2004 is 58.5x.

Adams Harkness & Hill upgrades ATMI Inc from “market perform” to “strong buy.”