Himax Technologies (HIMX) Stock Gains on Analyst Upgrade

NEW YORK (TheStreet) -- Shares of Himax Technologies (HIMX) were gaining 7% to $7.47 Wednesday after Bank of America/Merrill Lynch upgraded the semiconductor company.

The analyst firm upgraded Himax to "buy" from its previous rating of "underperform," setting a price target of $8.50 for the company.

Analyst Daniel Heyler expects Himax to rebound in the second half of 2015 and in 2016. The analyst said smartphone demand in China is improving which will help the company. Heyler also said Himax's display driver IC sales will benefit from an inventory restocking and an improved mix.

Heyler also said 4KTV driver sales could account for up to 20% of large-panel driver shipments by the first half of 2016.

About 2.1 million shares of Himax were traded by 10:42 a.m. Wednesday, compared to the company's average trading volume of abut 2.6 million shares a day.

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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."

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