Himax Technologies, Inc. (ADR) (HIMX) Fires Back at Oppenheimer


In an email to Smarter Analyst, Luke Zimmerman, Investor Relations Associate of MZ North America for Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) revealed the company’s frustration with the recent analysis of Andrew Uerkwitz from Oppenheimer. As reported by Smarter Analyst on Monday, Uerkwitz had issued a report which contained a number of assertions regarding Himax technology, production, and market share that HIMX management strongly rejects.

In regard to production, competition, and shipment of new technology, Uerkwitz made the claim that “HIMX is lagging competitors winning new designs […] does not have a clear technology lead.” However, company management fired back, writing that Himax has “begun shipping TDDI products and most importantly, WLO/DOE 3D scanning component shipping has begun in June and will accelerate for the remainder of 2017.”  The company expects “to launch OLED shipment to major panel makers before [the] end of 2017,” expressing confidence that “both products will contribute significant upside to the top and bottom lines in 2017.”

The company also questions Uerkwitz’s intention in setting a low target price “without facts.” In his report, the analyst downgraded the stock from Perform to an Underperform rating while introducing a new price target of $4, which represents a 50% downside from current levels.

HIMX dismisses the target price as “ridiculous,” adding that the analyst had not even bothered “talking to Himax management on the day we announce our EC (earning call) date (which is earlier than the company’s EC date in previous years).” In the email, management emphasized that the 2Q17 earnings call will be positive. Considering that HIMX “just declared dividend where investors only have one week to buy to get dividend,” the company has become all the more “suspicious” on Uerkwitz’s claims, deeming the bearish perspective unwarranted. In short, HIMX management stresses that the Oppenheimer report “does not represent the fact of our Company at all. Our business is not only on track but also rebounded strongly reflecting marketshare gain.”

The Street appears to largely side with Himax, seeing that TipRanks analytics indicate HIMX as a Buy. Out of 4 analysts polled by TipRanks in the last 3 months, 3 are bullish and 1 is bearish on the stock. The consensus target price stands at $8, marking a 6% downside from current levels.