Himax Technologies (HIMX) Gains as Prospects Brighten According to Northland Capital

Himax Technologies (NASDAQ: HIMX) is continuing Thursday's late-day move after Northland Capital Markets analyst Tom Sepenzis put out a formal note, reiterating Outperform rating and raising his price target to $11.00 (from $8.00).

"Himax is recovering quickly from the drop in Samsung revenue and the potential loss of Google as a LCOS customer," Sepenzis said. "We believe the core business is rebounding given the exposure to Asian OEM’s and slightly better performance from Samsung. LCOS, largely taken out of the model in FY15 is seeing greater activity, and we continue to believe that Himax will be a major winner in the virtual reality/augmented reality space as it evolves."

On Google glass, the analyst said it looks like Google will be returning. "While there is still no word on timing for commercial release for a new version of Glass, Google has been making significant investments in personnel including Ivy Ross and the partnership with Luxottica. We believe that earlier reports of Google looking at alternative display technologies are accurate, but believe that the company may be returning to the Himax fold."

The firm is raising FY15 numbers given renewed expectations for the LCOS business. They are raising LCOS estimates by approximately $15 million for the full year. This increases total revenue to $983.0 million and EPS to $0.55 from $968.5 million and $0.53, respectively.

For an analyst ratings summary and ratings history on Himax Technologies click here. For more ratings news on Himax Technologies click here.

Shares of Himax Technologies are up 4.2% early to $9.28.

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