By late morning, shares had taken off 15.4% to $11.32. Trading volume of 12.5 million was nearly double its three-month daily average.
The firm gave the liquid crystal on silicon (LCoS) display maker a two-notch downgrade to "underperform" from "buy" with a $12.50 price target.
Bank of America analysts said Himax is competing in a highly competitive market and so margin expansion will be difficult without significantly increasing LCoS microdisplay production volume.
The company lowered its fiscal 2014 earnings estimate 60 cents a share and fiscal 2015 to 89 cents a share.
Analysts surveyed by Thomson Reuters forecast 2014 net income of 61 cents a share and 2015 net income of 88 cents a share.
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TheStreet Ratings team rates HIMAX TECHNOLOGIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HIMAX TECHNOLOGIES INC (HIMX) a BUY. This is driven by some important positives, 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 growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."