Piper Jaffray Reiterates Overweight Rating on Dolby Laboratories (DLB)

Piper Jaffray is out with a research report this morning, where it reiterates its Overweight rating on Dolby Laboratories DLB; it has a $75.00 price target on the stock. The Jefferies analysts cited the company's recent earnings report, which beat the Street, driven by higher than expected license revenue. However, the company offered a mixed revision to its FY11 outlook with Dolby upwardly revising EPS to $2.65 vs. the Street at $2.67 (midpoint), but downwardly revising revenue guidance midpoint from $970m to $950m based on more conservative PC sales assumptions. As for valuation, the analysts remarked, “We maintain our Overweight rating and $75 PT, based on an unchanged multiple of 25x rolled forward to FY12 EPS estimate of $2.99, but we are now excluding cash due to decreased visibility in the PC market.”