2024-07-18 08:28:00 ET
Summary
- HIMX stock showed almost 32.5% total return since my last "Buy" rating update, outperforming the S&P 500. How much growth is left? Let's find out.
- HIMX's financial performance in Q1 exceeded expectations, with a strong balance sheet and growth prospects.
- I can say that the price increase that seems to be "pricing in" a potential margin expansion may be justified.
- According to my calculations, Himax stock's growth potential could be more than 50% if current EPS projections for 2025 are close to the mark.
- The forecast for the second half of 2024 is significantly better than for the first half. I've decided to reaffirm my "Buy" rating for the medium to long term.
My Thesis Update
I initiated coverage of Himax Technologies, Inc. ( HIMX ) stock in April 2021 with a "Buy" rating, reiterating it in late December 2023 . In my latest thesis update, I stated that HIMX's end markets are also likely to show stronger growth soon and that amid improving margins the stock should thrive. Since then, HIMX has been able to show almost 32.5% in total return, while the S&P 500 index ( SP500 ) ( SPY ) went up by only 17.8%....
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For further details see:
Himax Technologies Is Still A Great 'Buy'