BGB Upgrading DTS To Buy (DTSI)

BGB Securities is upgrading shares of DTS, Inc. DTSI to Buy with a $56 price target on shares.

In a note to clients, BGB writes, "We are upgrading shares of DTSI from Hold to Buy, and setting a price target of $56. DTS's growth outlook is strong, with a solid and rapidly growing Blu-ray segment, and an emerging and accelerating connected devices segment. We expect growth in the connected devices category to accelerate, with rapid expansion of the number of devices over the near and medium term. Furthermore, we believe DTS is well positioned to announce significant new licensing agreements in FY11 and penetrate more SKU's of device companies. On the Blu-ray front, we expect continued growth, as the format further establishes its leadership in optical media. Moreover, we believe falling Blu-ray drive prices will facilitate more rapid growth in PCs and related segments."

Shares of DTSI are down 39 cents in early Tuesday trading to $46.66, a loss of 0.8%.