Chardan Capital Markets Upgrades Himax Technologies (HIMX) to Neutral

Chardan Capital Markets upgraded Himax Technologies (NASDAQ: HIMX) from Sell to Neutral with a price target of $7.00.

Analyst Jay Srivatsa commented, "We had downgraded HIMX a little over a year ago in Jan 2014 from a Buy to Neutral rating when the stock was $14.54 after the company’s stock had posted phenomenal returns of 1386% since our upgrade in Oct 2011. Our premise for the downgrade had been that we did not expect Google (GOOG-NR) Glass to be a meaningful contributor for HIMX in FY:14. We subsequently downgraded to a Sell in May 2014 when we projected its core business of large panel ICs and small panel ICs could experience weak demand and significant volatility in ordering patterns. Our thesis played out as we had expected with Google shutting down its Glass product (version 1) in early 2015 and HIMX posting a 45% decline in its stock price in FY:14. Entering FY:15, we remained bearish as our checks going into its Q4:14 conference call yesterday continued to suggest significant weakness in smartphone demand. However, we now believe that all of the bad news related to Google and volatility in smartphone and TV demand has largely been priced into the stock. We now believe that HIMX is returning to its roots as premier supplier of small and large panel ICs that has also added valuable product diversification through its CMOS image sensor, touch sensor, LCOS Microdisplays, Wafer Level Optics, Automotive display driver IC and ASIC services business."

For an analyst ratings summary and ratings history on Himax Technologies click here. For more ratings news on Himax Technologies click here.

Shares of Himax Technologies closed at $7.76 yesterday.

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