A press release from both Qualcomm (NASDAQ: QCOM) and Himax Technologies (NASDAQ: HIMX) pushed shares of HIMX to a yearly high of $11.97. That gave way to profit-taking after Oppenheimer issued a bearish note on the company.
Qualcomm and Himax will jointly develop a camera that uses 3D sensing technology. This could potentially lead to tens of millions in unit sales for Himax in the future. Oppenheimer wrote a generalized note that questioned Himax’s growth potential.
Himax issued a press release to state that the analyst neither understands the business nor understands the business.
Himax’s potential in WLO production will re-accelerate revenue. The company raised its capital expenditures in this segment because it cannot handle the higher orders for 3D sensing technology solutions.
Top-end Android makers are set to release 3D-sensing cameras. AR suppliers also need WLO-based solutions from Himax. Himax must invest in its manufacturing capabilities to meet the demand. In 2018, these technologies could become mainstream. That suggests the growth potential in this market for Himax is positive.
Takeaway
Oppenheimer wrongly called HIMX stock a sell in the summer, when it traded in the $5 range. Now that it doubled, Himax’s pullback could give investors that missed the run-up a chance to buy the stock.
