In a report sent to investors today, Oppenheimer analyst Andrew Uerkwitz reiterated a Perform rating on shares of Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), after the company released its third-quarter results, posting revenues and non-GAAP EPS of $166M/$0.01, compared to Oppenheimer’s estimates of $158M/$0.01E, respectively.
Uerkwitz wrote, “Although top-line performance was stronger than expected, margin took a hit due to panel pricing pressure. This higher revenue/margin pressure trend is likely to continue as mgmt stressed its commitment to sacrificing GM to secure a LT leading position within the capacity expansion currently underway in China. With non-traditional growth initiative revenues (TDDI, AMOLED, WLO, LCOS) likely not a contributing factor until 2H16 or beyond, and weak near-term macro conditions and guidance, we remain sidelined.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a total average return of 3% and a 56.1% success rate. Uerkwitz has a -22.1% average return when recommending HIMX, and is ranked #1100 out of 3842 analysts.
Out of the 8 analysts polled by TipRanks, 4 rate Himax stock a Buy, while 4 rate the stock a Hold. With a return potential of 51%, the stock’s consensus target price stands at $9.55.