NEW YORK (TheStreet) -- Himax Technologies (HIMX) plummeted 6.8% over Tuesday's session, but the small-cap semiconductor is regaining some of its losses on Wednesday. The stock had climbed 2.9% to $13.94 by early afternoon.
A day earlier, the Taiwanese company received a downgrade from Chardan Capital Markets to "neutral" from "buy" with a price target of $12.
Analyst Jay Srivatsa said while many are holding onto the company ahead of the widespread launch of Google (GOOG) Glass, wearable technology for which Himax supplies LCoS microdisplays, competition from its core business could result in flagging sales. Rivals Novatek, Orise and Illitek are currently making market share grabs in Himax's core LCD display drivers division.
On Monday, the stock rallied on reports Samsung had begun working on head-mounted wearable technology and that it might use Himax as a key component supplier.
The Tainan-based business skyrocketed 520% over 2013 after it landed a key contract as the microdisplay supplier to Google Glass.
TheStreet Ratings team rates HIMAX TECHNOLOGIES INC as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate HIMAX TECHNOLOGIES INC (HIMX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."