UPDATE: J.P. Morgan Lowering Price Target On DTS, Inc.

J.P. Morgan Chase & Co. is out with a research report on DTS, Inc. DTSI and is lowering price target to $29.00 from $34.50, and it is keeping its Overweight rating on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "DTSI reported 2Q11 results slightly above our below-consensus expectations. FY11 guidance was reduced by ~5% on both top-line and bottom-line, though unit shipments guidance was maintained. As expected, Blu-Ray and Connected Devices are driving near-term growth and management tone remains constructive for both categories in 2012 time-frame. We believe that current adverse consumer backdrop, slowdown in the legacy business and CE industry disruption by tablets and connected devices warrant a moderation of our growth forecast." Shares of DTSI lost 14 cents yesterday to close at $29.69.