Story updated at 9:55 a.m. to reflect market activity.
Shares of Himax were falling 2% to $6.76 in morning trading.
The analyst firm lowered its 2014 EPS estimates for the fabless semiconductor company to 43 cents a share for the year, down from previous estimates of 48 cents a share. The firm lowered its 2015 EPS estimates to 46 cents a share from 53 cents a share.
"Our below Street consensus (2015 rev/EPS of $927M/$0.46 vs $1,013M/$0.51) is predicated on: 1) broader Samsung weakness; 2) share shifts in the Chinese handset market; 3) slower UHD adoption; and 4) ascribing very little value to the microdisplay segment," analysts Andrew Uerkwits and Martin Young wrote. "We do expect 2015 to be a growth year, but see the Street underestimating the volatility that the mobile handset market will bring next year."
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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 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."