Nomura analyst Donnie Teng upgraded his position on Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) from Neutral to Buy following a reset of expectations for the company.

The analyst cites a notable increase in share price in 1Q16 thanks to factors involving component supplier HoloLens. However, the analyst explains that he still maintains some concerns about how smooth market entry will be for some of the company’s new products. The analyst also believes that DDI momentum will find itself vulnerable as competitor Novatech fights back to maintain its control in the market.

The company’s shares have fallen 38% from their recent highs, which the analyst attributes to a downward revision of HoloLens shipments. The analyst concedes that headwinds into 2H16 could arise, but remains bullish on the stock, issuing a price target of $9.70, based on an unchanged 18x P/E and an expected EPS of $0.54 a share.

According to TipRanks, 2 analysts are bullish on Himax and 2 are neutral. The average 12-month price target between these 4 analysts is $13, marking a 59% potential upside from current levels.