NEW YORK (TheStreet) -- Himax (HIMX) was falling -8.6% to $7.00 Tuesday following reports that Renasas Eletronics plans to sell its stake in a unit that supplies display driver chips for the Apple (AAPL) iPhone.
Renesas will sell its stake to Synaptics (SYNA), according to Reuters. The unit is the sole supplier to for display driver chips in the iPhone. Shares of Himax, which produces display integrated circuit products and offers LCD consulting, are falling following news of the sale.
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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 a few notable strengths, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: