Why Himax Technologies (HIMX) Stock Is Up Today

NEW YORK (TheStreet) -- Himax Technologies (HIMX) was gaining 7.1% to $9.66 Wednesday following a positive note from Bank of America-Merrill Lynch (BAC) .

The analyst firm raised its estimates for the company based on expectations of stronger smart glass adoption. Bank of America-Merrill Lynch analysts also raised shipment estimates for Himax's LCOS micro-display shipments through 2016.

The analysts also expect Google (GOOGL) to exercise its option to take a larger stake in the company. That option could increase the Search giant's stake in the company to 14.8% from its current 6.3%. Google owns part of Himax because it uses the company's LCoS micro-displays in Google Glass.

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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 impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

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