J.P. Morgan Overweight On Dolby Laboratories (DLB)

J.P. Morgan Chase & Co. has an Overweight rating and a $75 price target on shares of Dolby Laboratories DLB. In a note to clients, J.P. Morgan writes, "We believe DLB will report in-line F1Q results and keep FY11 guidance unchanged. We believe DLB's challenges are well-understood and expressed in the stock's multiple, which remains below the 5-year mean. Tablet PCs have momentarily slowed the PC market, DTV sales were weaker than expected building into the holidays and internet-connected game consoles and media players haven't yet embraced surround sound in a big way, but will in our view. That said, we expect DLB to muscle its way to growth from higher attach rates, and ramping unit sales of DTVs in emerging markets, ramping Blu-Ray shipments, growth in mobile, and a steady deployment of enterprise PCs. D-Cinema shipments could surprise, positively. With the economy strengthening, consumer spending ticking up, we believe DLB should benefit in mid/late 2011. Tablet PCs should be a growth driver in late 2011 too. Maintain Overweight. Price target $75.00." Shares of DLB closed at $60.50 on Friday.