Why Himax Technologies (HIMX) Stock Is Up Today

NEW YORK (TheStreet) -- Himax Technologies (HIMX) was gaining 5.8% to $6.78 Tuesday after receiving an upgrade from Bank of America/Merrill Lynch (BAC) ahead of its second quarter earnings report.

The firm upgraded Himax to "buy" from "neutral," raising its price target to $7.60 from $7.00. Bank of America/Merrill Lynch analyst Daniel Heyler expects strong growth from the company's coer business of LCD driver ICs in 2014 and 2015.

Himax will report its second quarter results on Thursday.

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Separately, 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, reasonable valuation levels and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • HIMX's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 10.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although HIMX's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average. To add to this, HIMX has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
  • HIMAX TECHNOLOGIES INC has improved earnings per share by 12.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HIMAX TECHNOLOGIES INC increased its bottom line by earning $0.35 versus $0.30 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus $0.35).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Semiconductors & Semiconductor Equipment industry average, but is greater than that of the S&P 500. The net income increased by 12.0% when compared to the same quarter one year prior, going from $14.03 million to $15.71 million.
  • You can view the full analysis from the report here: HIMX Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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