In a report released today, James Goss from Barrington maintained a Buy rating on Dolby Laboratories (DLB), with a price target of $85. The company’s shares closed yesterday at $61.58.
Goss wrote:
“We continue our OUTPERFORM investment rating on DLB and $85 price target: While the favorable financial impact from the rollout of new technologies continues to evolve, we feel the benefits from some of them are becoming increasingly meaningful. The company’s $0.76 annual dividend provides a yield of 1.2%. The company also is active in repurchasing its shares, with over $400 million in authorization currently remaining. Management has noted that monetization benefits from its cinema sector efforts remain in early stages in terms of financial metrics. However, excitement over the early success of these initiatives has created a more optimistic view of Dolby’s potential to create renewed corporate momentum as management continues to target a return to double-digit growth. Laboratories, Inc.”
According to TipRanks.com, Goss is a 5-star analyst with an average return of 10.8% and a 62.3% success rate. Goss covers the Services sector, focusing on stocks such as Lions Gate Ent Corp Cl A, Nexstar Media Group Inc, and Sirius XM Holdings Inc.
Currently, the analyst consensus on Dolby Laboratories is a Moderate Buy with an average price target of $76.
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Based on Dolby Laboratories’ latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $50.09 million. In comparison, last year the company had a GAAP net loss of $81.62 million.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2018, Lewis Chew, the EVP & CFO of DLB sold 35,000 shares for a total of $2,430,116.
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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.
