Story updated at 9:55 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Oppenheimer downgraded Himax Technologies (HIMX - Get Report) to "perform" from "outperform" on Tuesday.

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."

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

  • Despite its growing revenue, the company underperformed as compared with the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 15.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, HIMX has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • HIMAX TECHNOLOGIES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($0.47 versus $0.35).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market on the basis of return on equity, HIMAX TECHNOLOGIES INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • You can view the full analysis from the report here: HIMX Ratings Report

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