Analysts at Bank of America’s (BAC) Merrill Lynch unit have trimmed their rating of Himax Technologies (HIMX) shares, sending HIMX stock tumbling more than 11% in Tuesday morning trading.
HIMX stock dropped after the analysts cut their rating of HIMX from “Buy” to “Underperform,” due to worries over growth in the company’s Liquid Crystal on Silicon (LCoS) business, Barron’s notes.
The analysts have set a price target of $12.50 for HIMX shares — almost 7% below Monday’s closing price of $13.38 per Himax share.
While the analysts remained optimistic about the display technology’s broader application in the gaming and industrial sectors, they were cautious about a new consumer product rollout from Google (GOOG), which purchased a 6.3% stake in the company last year. According to Barron’s that suggests that Google Glass, a high-tech headset that features an LCD screen, camera and microphone, may not launch until 2015.
Himax stock has gained more than 200% over the past 12 months.