Analyst Update: BlackBerry Limited, MagnaChip Semiconductor Corporation, and Himax Technologies, Inc.

Analysts adjusted their ratings on BlackBerry Ltd (BBRY), Magnachip Semiconductor Corp (MX), and Himax Technologies, Inc. (ADR) (HIMX)

by Josh Selway

Published on May 29, 2015 at 1:15 PM

Analysts are weighing in today on smartphone concern BlackBerry Ltd (NASDAQ:BBRY), as well as semiconductor manufacturers Magnachip Semiconductor Corp (NYSE:MX), and Himax Technologies, Inc. (ADR) (NASDAQ:HIMX). Here's a quick look at today's brokerage notes on BBRY, MX, and HIMX.

  • There's plenty of buzz surrounding BBRY today, which is down 1.3% at $9.90, after a Morgan Stanley analyst reiterated his "underweight" rating and $7 price target, and said the company's 2016 forecast is "unattainable." This mirrors the general outlook on the Street, where 16 of 19 brokerage firms say the stock is a "hold" or worse. Not only that, but 16.9% of BlackBerry Ltd's float is sold short, representing almost 11 days of trading, at its normal volumes. This widespread pessimism is interesting, considering the shares have added over 30% in the past year. From a contrarian standpoint, this skepticism could benefit BBRY, if it can resume its long-term uptrend.

  • Topeka Capital upgraded its rating on MX to "buy" from "hold" today, following the company's impressive showing in the earnings confessional. The stock is still trying to make up ground after its massive mid-February bear gap, but the shares have outperformed the S&P 500 Index (SPX) by nearly 14 percentage points in the past three months. Plus, they're soaring today, last seen 13.5% higher at $7.25. Put buying has still been more popular than normal in recent months. Magnachip Semiconductor Corp's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.28 is higher than more than three-fourths of readings from the past year.

  • HIMX is 4.8% lower today at $6.22, with a downgrade to "sell" from "neutral" -- and price-target cut to $4 from $5 -- at Chardan Capital weighing on the shares. Specifically, the brokerage firm said Samsung could possibly migrate from HIMX LCD display drivers to AMOLED displays. Even before today, the equity was 19% below its year-to-date breakeven level, and short sellers have been piling on. Short interest increased 52.8% during the two most recent reporting periods, and it would now take over four days to buy back all the shorted shares, at Himax Technologies, Inc.'s average daily volumes. Things are more bullish in HIMX's options pits, though. During the past 50 days at the ISE, CBOE, and PHLX, over 17,000 calls have been bought to open, versus fewer than 400 puts.

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