Himax Technologies: Strategic Growth in Non-Driver Products and Resilient Market Position Reinforce Buy Rating

Tristan Gerra, an analyst from Robert W. Baird, maintained the Buy rating on Himax Technologies (HIMX – Research Report). The associated price target was lowered to $10.00.

Tristan Gerra has given his Buy rating due to a combination of factors that highlight the potential growth and strategic positioning of Himax Technologies. The company is seeing promising revenue growth opportunities in its non-driver product segment, particularly with WiseEye, which is gaining traction in AI notebooks and emerging applications such as palm vein recognition and augmented reality. This momentum is supported by the ongoing sampling ramp of CPOs, which is proceeding as planned.
Despite challenges in the display segment due to cautious inventory stances by China panel OEMs and competitive pressures from local, government-subsidized companies, Himax maintains a strong market position in automotive displays with significant market shares in DDIC, TDDI, and T-Con. The company’s guidance for the second quarter shows a potential revenue increase and a higher gross margin than previously estimated, indicating a resilient performance amidst external pressures. The valuation of Himax remains attractive, with a new price target set at $10, reinforcing the Buy recommendation.

Gerra covers the Technology sector, focusing on stocks such as Intel, ON Semiconductor, and Diodes. According to TipRanks, Gerra has an average return of 4.0% and a 45.11% success rate on recommended stocks.