In a report issued on May 10, Jun Zhang from Rosenblatt Securities maintained a Sell rating on Himax Technologies (NASDAQ: HIMX), with a price target of $6. The company’s shares closed on Friday at $6.81, close to its 52-week low of $5.97.
Zhang said:
“We think the Chinese smartphone market will rebound 25% QoQ in Q2. Be- cause Himax has no meaningful TDDI design wins, they most likely won’t bene- fit as much as other smartphone suppliers from a Chinese Q2 rebound. We think TV market demand is still weak in China, after TV sales came in very weak (-15% Day holiday sales in early May. Currently, we believe TV inventory is three weeks higher than the normal level, and we think TV panel demand will face pressure in the 2nd half of this year. The driver IC segment is not investable due to competition in the market, and we do not think the 3D sensing opportunity for Himax has materialized. With 1.0 cent EPS guidance for Q2, and consensus estimates of 20.0 cents for 2018, we continue to stay sidelined and maintain our sell rating until we see further progress on 3D sensing.”
According to TipRanks.com, Zhang is a 1-star analyst with an average return of -3.7% and a 51.2% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Lumentum Holdings, Synaptics Inc, and NeoPhotonics.
Currently, the analyst consensus on Himax Technologies is Moderate Sell and the average price target is $6.80, representing a -0.1% downside.
In a report issued on May 10, Oppenheimer also assigned a Sell rating to the stock with a $4 price target.
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Based on Himax Technologies’ latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $23.67 million. In comparison, last year the company had a net profit of $1.37 million.
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Himax Technologies, Inc. engages in the development and trade of semiconductors. It operates through the Driver Integrated Circuit and Non-Driver Products segments.
