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Oppenheimer Remains a Sell on Himax Technologies (HIMX)


Oppenheimer analyst Andrew Uerkwitz maintained a Sell rating on Himax Technologies (HIMX) yesterday and set a price target of $4. The company’s shares closed yesterday at $4.82, close to its 52-week low of $4.74.

Uerkwitz wrote:

“HIMX 3Q18 revenues/EPS are slightly higher than consensus and our estimates, but 4Q guidance fell below consensus again. Management attribute the near-term headwinds to mobile DDIC and prevailing weakness in overall consumer electronics. As for 3D sensing, the company has not secured any major Android mobile customer for its module solution. Large-size DDIC and automotive remain the bright spots due to customer ramping and market leadership, respectively. For 2019, management reiterates that TDDI capacity shortage will be fully resolved by 3Q19 and high cost remains a key hurdle for 3D sensing adoption. We see downside risks to DDIC due to HIMX’s weaker competitive position and lack of growth potential from 3D sensing. Our 2019 revenue estimate ($757M) is significantly below consensus ($873M). Reiterate Underperform.”

According to TipRanks.com, Uerkwitz is a 5-star analyst with an average return of 18.4% and a 58.9% success rate. Uerkwitz covers the Consumer Goods sector, focusing on stocks such as Axon Enterprise Inc, Turtle Beach Corp, and Universal Display.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Himax Technologies with a $7.40 average price target.

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Himax Technologies’ market cap is currently $829.5M and has a P/E ratio of 31.20. The company has a Price to Book ratio of 1.89.

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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.