In a report released today, Eric Wold from B.Riley FBR maintained a Hold rating on Dolby Laboratories (DLB – Research Report), with a price target of $67. The company’s shares closed yesterday at $62.69.
“We are revisiting Dolby Laboratories (DLB) following the investor lunch we hosted with DLB management at the company’s San Francisco headquarters on Tuesday, 6/11. Although we are maintaining our Neutral rating and $67 PT, we actually came away from the lunch with a better understanding of and more optimism around multiple opportunities for DLB to generate incremental license revenue growth in addition to the stronger view around Dolby Vision in general that we have had over the past six months. Furthermore, we cannot rule out the possibility that content-driven market forces will eventually lead to the integration of Samsung phones with our view that economics are not really the issue. And with management clearly indicating a desire to accelerate capital returns to shareholders, we will look for an opportunity to become more positive on DLB shares.”
According to TipRanks.com, Wold is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -7.4% and a 29.6% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.
Dolby Laboratories has an analyst consensus of Strong Buy, with a price target consensus of $76.
Based on Dolby Laboratories’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $73.44 million. In comparison, last year the company had a net profit of $70.63 million.
Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. Last month, Lewis Chew, the EVP & CFO of DLB sold 35,000 shares for a total of $2,219,298.
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Dolby Laboratoties, Inc. designs and manufactures audio and imaging products for the cinema, television, broadcast, and entertainment industries. Its products include Cinema Imaging, Cinema Audio, Dolby Conference Phone, Dolby Voice Room, and Other Products. The company was founded by Ray Milton Dolby in 1965 and is headquartered in San Francisco, CA.