2016-09-26 15:17:52 | Himax crashes as analyst warns of slow sales for augmented reality clientHimax (HIMX) fell double-digits Monday after being downgraded by Nomura, with the firm arguing that a slower launch ramp for the semiconductor designer's augmented reality client could dampen near-term tailwinds from the contract. SLOW RAMP FOR MICROSOFT HOLOLENS: Nomura analyst Donnie Teng downgraded Himax to Neutral while cutting his price target to $10.20 from $12 on Monday. Teng, who had just raised his target on the stock in early September, said his recent checks suggest that pricing upside for Himax chips ordered for a "major" augmented reality device could be offset by weaker shipments of the gadget, which may not take off until 2H17. The analyst added that Himax remains a "good" proxy for the longer-term AR story. Himax has previously been discussed in the context of Microsoft's (MSFT) HoloLens, and media discussion of today's downgrade pinned HoloLens as the device in question. PRICE ACTION: Shares of Himax trading in New York have plunged nearly 19% to $8.70 in afternoon trading. | |
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