Himax Technologies is down more than 6% after Baird downgraded the shares to neutral from outperform and cut its price target to $4 from $10.
Baird reportedly said “China panel makers are expected to start adopting gate-in-panel technology this year, which would reduce driver IC content. Himax’s in-cell touch design has been delayed, while OLED ramp at China-based panel makers is not expected until 2019.”
Last week, the company said preliminary Q4 sales were $203.4 million, a sequential decline of 6.7% from $218.1 million and in-line with company guidance of a 4.0% to 9.0% sequential decline.
GAAP earnings per ADS were $0.026, below the company’s guided range of $0.085 to $0.11. Non-GAAP earnings per diluted ADS were $0.028, below the guided range of $0.087 to $0.112.