Collins Stewart Cuts Price Targets on Dolby Laboratories (DLB) Ahead of Earnings, Lowers Expectations
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Price: $34.37 -0.41%
Rating Summary:
4 Buy, 6 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Rating Summary:
4 Buy, 6 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Trade DLB Now!
Collins Stewart is maintaining its Hold rating on shares of Dolby Laboratories (NYSE: DLB) while cutting its price target from $45 to $35 ahead of earnings.
The firm is lowering its FY11 and FY12 EPS estimates from $2.64 and $2.69 to $2.63 and $2.56. Collins Stewart also cut its revenue estimates for the two years to $943 million and $968 million.
The lower 2012 guidance goes inline with their expectations of muted 2012 guidance. The firm's beliefs reflect slowing end-marekt demand fro DVDs, PCs, and TVs.
The firm believes that two major questions investors are asking about the company are what is a fair valuation for the company and how can management begin to create meaningful growth.
An analyst at Collins Stewart comments, "We believe it will be difficult for DLB to return to meaningful organic growth and anticipate the Co will become more aggressive on M&A. However, we continue to recommend the sidelines until further clarity is provided."
The company is expected to release its Q4 results on November 17 following the closing bell. The firm forecasts earnings of $0.60 for the quarter, inline with the consensus.
For an analyst ratings summary and ratings history on Dolby Laboratories click here. For more ratings news on Dolby Laboratories click here.
Shares of Dolby Laboratories closed at $28.78 yesterday, with a 52 week range of $25.70-$68.88.
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The firm is lowering its FY11 and FY12 EPS estimates from $2.64 and $2.69 to $2.63 and $2.56. Collins Stewart also cut its revenue estimates for the two years to $943 million and $968 million.
The lower 2012 guidance goes inline with their expectations of muted 2012 guidance. The firm's beliefs reflect slowing end-marekt demand fro DVDs, PCs, and TVs.
The firm believes that two major questions investors are asking about the company are what is a fair valuation for the company and how can management begin to create meaningful growth.
An analyst at Collins Stewart comments, "We believe it will be difficult for DLB to return to meaningful organic growth and anticipate the Co will become more aggressive on M&A. However, we continue to recommend the sidelines until further clarity is provided."
The company is expected to release its Q4 results on November 17 following the closing bell. The firm forecasts earnings of $0.60 for the quarter, inline with the consensus.
For an analyst ratings summary and ratings history on Dolby Laboratories click here. For more ratings news on Dolby Laboratories click here.
Shares of Dolby Laboratories closed at $28.78 yesterday, with a 52 week range of $25.70-$68.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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