MS Downgrades HIMX, The Street Acknowledges Microvision - Updated

It's been my experience (whether right or not I'm not sure) that The Street's articles can be difficult to re-locate or disappear. So, I've pulled the whole article out for posting here.

Himax was the key display provider for Google Glass, and an apparent supplier to Hololens -- although word was that Hololens was going elsewhere as well. (That was referenced here, I will update when I find the link.)

Thanks Joe

Morgan Stanley Downgrades Himax Technologies (HIMX) to Underweight Amid Growing Competition

(Updated - February 6, 2017 1:23 PM EST)

Morgan Stanley downgraded Himax Technologies (NASDAQ: HIMX) from Equalweight to Underweight with a $4 price target (down from $6), implying 24% downside.

Analyst Charlie Chan said New AR smart glasses are adopting micro display technology other than Himax's LCoS. This could jeopardize the company's leadership in this market in the long term.

Chan said while the stock is down 49% since September 1, 2016, it could de-rate further if its leading position in micro displays gets challenged.

"We now see further threats to the dominance in micro display technology of LCoS (Liquid Crystal on Silicon)," Chan commented. "Vuzix, one of the leading vendors of AR smart glasses, won the CES Innovation Awards for its Blade 3000 and M3000, which incorporates DLP technology from Texas Instruments. DLP generally has the disadvantage of bigger form factor vs. LCoS, yet our read from Vuzix’s press release suggests that this has been overcome. In addition, MicroVision, the solutions provider for laser MEMS micro display technology, became one of Vuzix's key suppliers starting from 2015."

For an analyst ratings summary and ratings history on Himax Technologies click here. For more ratings news on Himax Technologies click here.

Shares of Himax Technologies closed at $5.24 yesterday.


Barrons Blog

Morgan Stanley analyst Charlie Chan says Himax’s display technology is no longer cutting edge, current customer Microsoft (MSFT) is going to cut orders, and its December quarter earnings may disappoint. Chan wrote:

We now see further threats to the dominance in micro display technology of LCoS (Liquid Crystal on Silicon). Vuzix, one of the leading vendors of AR smart glasses, won the CES Innovation Awards for its Blade 3000 and M3000, which incorporates DLP technology from Texas Instruments (see Exhibit 1). DLP generally has the disadvantage of bigger form factor vs. LCoS, yet our read from Vuzix’s press release suggests that this has been overcome. In addition, MicroVision, the solutions provider for laser MEMS micro display technology, became one of Vuzix’s key suppliers starting from 2015.