Dolby Laboratories Gets a Hold Rating from B.Riley FBR

By Jason Carr

B.Riley FBR analyst Eric Wold maintained a Hold rating on Dolby Laboratories (NYSE: DLB) today and set a price target of $63. The company’s shares closed yesterday at $67.28.

Wold wrote:

“Dolby Laboratories (DLB) is scheduled to report 2Q18 results after the close on Tuesday, 4/24, with a conference call at 5:00pm ET. While we are not making any changes to our model heading into the print, we remain comfortable with our estimates—which are slightly below consensus, but could have upside bias from Mobile category strength and Samsung’s adoption of Dolby Atmos into the new Galaxy line. Even with that potential upside, we would not be surprised if management held the line on guidance, given potential uncertainties around the U.S./China tariff dispute that could increase prices (and suppress consumer demand) for TVs/consumer electronics out of that country. We continue to believe the current valuation is reflective of the near-term outlook with some uncertainties around HDR format adoption—and we are maintaining a Neutral rating and $63 PT.”

According to TipRanks.com, Wold is a 4-star analyst with an average return of 5.8% and a 54.0% success rate. Wold covers the Services sector, focusing on stocks such as Cinemark Holdings Inc, National Cinemedia, and AMC Entertainment.

Dolby Laboratories has an analyst consensus of Moderate Buy, with a price target consensus of $53.75.

Based on Dolby Laboratories’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $288 million and GAAP net loss of $81.62 million. In comparison, last year the company earned revenue of $267 million and had a net profit of $50.59 million.

Based on the recent corporate insider activity of 72 insiders, corporate insider sentiment is neutral on the stock. Last month, Peter Gotcher, a Director at DLB sold 18,544 shares for a total of $1,196,644.

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Dolby Laboratoties, Inc. engages in the provision of audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. The company was founded by Ray Milton Dolby in 1965 and is headquartered in San Francisco, CA.