According to Morgan Stanley analyst Craig Hettenbach, Microchip Technology Inc. MCHP 2.76%‘s acquisition of Atmel Corporation ATML 0.13% is “the most identifiable catalyst for the stock we have seen in years.”

In a new report, Hettenbach explained why, after years of maintaining an Equal-weight rating on Microchip Technology, Morgan Stanley cites Atmel as the key to an upgrade to Overweight.

“We see the Atmel deal being 20% accretive for Microchip as it brings down Atmel’s higher cost structure (opex ratio of ~40% vs MCHP at 30%),” he explained.r?

In addition, Morgan Stanley is looking…

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