Dougherty & Co upgraded Dolby Laboratories (NYSE: DLB) from Neutral to Buy with a price target of $38.

Analyst Steven Frankel said, "On the heels of a solid Q1 performance where the company posted 3% revenue growth, reiterated its full year guidance, and showed material progress across its three key new initiatives, we are raising our rating on Dolby from Neutral to Buy. For the first time in the last couple of years, we are more optimistic and believe the current valuation of 13.7x our CY16 EPS estimate (ex-SBC) and just 11.1x excluding the company's $8.61/share in cash, represents an excellent entry point for this improving story. Our Price Target is $38, which is based on 12.5x CY16 EPS, plus the cash on the balance sheet."

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 $31.73 yesterday.