In the first preview for Himax Technologies’ (HIMX) earnings report, one reader questioned the forecast for a drop in yearly earnings (FY2016). Conversely, Himax’s tailwinds are in AR and VR. HoloLens, albeit $3,000-5,000 for a prototype, is beyond the reach of consumers. Still, Microsoft is releasing a cheap, $299 variant. This move changes the landscape for VR and benefits Himax.Facebook's (FB) developments and commitment for Oculus will help accelerate adoption of VR. Again, this is good for Himax. The optimistic outlook suggests an 8 – 12 x exit multiple for Himax. This gives the stock a target price of $10.32 / sh. Himax closed at $7.63. Low Mid High Company LTM EBITDA Multiple 20.3x 20.3x 20.3x Benchmark LTM EBITDA Multiple 2.0x 12.9x 42.9x Sector LTM EBITDA Multiple 0.0x 12.7x 943.2x Selected EBITDA Exit Multiple 8.0x 10.0x 12.0x Terminal Value 1,755 2,193 2,632 Implied Fair Value $7.71 $9.78 $13.46 Source: finbox.IOClick here to access model (free). $HIMX, Himax Technologies, Inc. / 60 RisksHIMX hired an executive to manage investor relations. As it gets better in communicating expectations to shareholders, the lower uncertainty will help the share price. Needless to say, a revenue miss will justify the stock's drop in recent weeks.