B. Riley Remains Bullish ahead of DTS, Inc's (DTSI) 4Q Report

B. Riley maintained a Buy rating on DTS Inc. (NASDAQ: DTSI), and cut the price target to $34.00 (from $41.00), ahead of the company's 4Q earnings report. DTSI is comfortable with current revenue and EPS estimates of $33.0MM/$0.15 compared to consensus estimates of $33.4MM/$0.14, and believes that the focus will actually be on 2016 guidance following the issues that drove the late-2015 guide-down. DTSI is scheduled to report earnings on 3/02, after the market closes.

Analyst Eric Wold commented, "DTSI is scheduled to report Q4 results on Wednesday, 3/2 after the close. While we remain comfortable with our Q4 estimates, we believe the focus will actually be on 2016 guidance following the issues that drove the late-2015 guide-down. Coming out of our multiple January meetings with DTSI and iBiquity management teams, the successful resolution of those implementation issues with OEM shipments now ramping to scale boosts our confidence in the initial 2016 guidance from November potentially being raised next week. Given the pullback in shares since then, we believe this would have an opportunity to jump start a recovery during 2016 as revenue/EPS visibility improves and the potential contribution of the iBiquity acquisition is better appreciated. We are reiterating our Buy rating with a lowered (and more peer multiple comparable) price target of $34.00 (down from $41.00)."

For an analyst ratings summary and ratings history on DTS Inc. click here. For more ratings news on DTS Inc. click here.

Shares of DTS Inc. closed at $23.11 yesterday.

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