Himax Technologies, Inc. (HIMX) Gets Price Target Lift on Rising Confidence in 3D Sensing Growth Prospects

Roth Capital's Suji Desilva is thrilled that Himax's fourth quarter is tracking ahead of his previous expectations.

Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) has captured the attention of a bull who now has become even more “constructive” on the Taiwanese fabless semiconductor firm, who short-term already looks to be gearing up for an outclass of smartphone demand expectations.

Roth Capital analyst Suji Desilva anticipates non-driver gains to fire up into next year, leading the analyst to reiterates a rating on HIMX stock while boosting the price target from $12 to $15, which represents a nearly 9% upside from the current levels.

“We believe HIMX represents a differentiated investment opportunity as a diversified display and sensor semiconductor vendor. Near-term, we believe the quarter to tracking ahead of our previous expectation with stable smartphone demand, continued large panel share gains and strong non-driver shipments and ramp opportunity. Looking toward 2018, we have increased confidence in the opportunity in 3D sensing driven growth,” asserts Desilva.

The tech firm’s prospects in grabbing content in more smartphone models looks more promising than ever, Desilva continues, noting that the company likewise has enticing potential to capture increasing content per phone coupled with prospects in 3D sensing content in non-smartphone form factors. When looking down the line, the analyst concludes on a bullish tone: “We believe HIMX and its partner Qualcomm (QCOM-NC) have the opportunity to sell higher ASP 3D sensing modules to competitive smartphone vendors that are increasingly regarding facial recognition as a “need-to-have” feature. We expect multiple China smartphone vendors to launch models with 3D sensing capabilities in the 2018 timeframe, driving significant growth in HIMX’s non-driver segment. As part of this ramp, we expect HIMX to expand capacity for key 3D sensing components.”

When taking note of the analyst consensus rating on TipRanks, Himax is in solid standing, earning positive initial word on its prospects. Based on 7 analysts polled in the last 3 months, 5 rate a Buy on the tech stock, 1 maintains a Hold, while 1 issues a Sell. The 12-month average price target stands at $13.00, marking a potential downside of just under 6%.

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