-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our price target by $9 to $64, utilizing a 15x P/E applied to our FY 26 (Sep.) EPS view, below DLB's three-year average (~20x) on risks to consumer electronics owing to the memory shortage. We lower our FY 26 EPS view by $0.06 to $4.22 and our FY 27 view by $0.02 to $4.29. DLB broadly maintained its FY 26 outlook ranges, along with expected growth rates, for each end market, which we think is optimistic given signs of a worsening memory shortage compared to earlier in the year. We expect a negative impact across each of DLB's end markets as a result, which could be realized quickly. However, we continue to think these risks are being reflected via shares' reduced valuation, while Mobile (25% of Q2 sales) remains somewhat insulated via minimum volume commitments. DLB still expects the Mobile and Broadcast end markets to grow by low single digits in FY 26. Longer-term upside from the automotive space (where partnership activity continues to grow toward ~40 OEMs) also provides some valuation support.