Collins Stewart Maintains DTS, Inc. Rating

In a report released this morning, Collins Stewart said that it is maintaining its Neutral rating on DTS, Inc. (NASDAQ: DTSI) following solid Q3'10 results/outlook, which slightly exceeded its/Street expectations.

“Results were driven primarily by strong Blu-ray sales (DTSI indicated Blu-ray player shipment approached 20M units in 2010 vs. guidance of 15 20M), which remain robust despite weak CE (LCD TV) demand,” Collins Stewart writes.

“While we are becoming increasingly constructive on the outlook for Blu-ray this holiday season at sub $100 price points and expect active retail promotional activity (bundling) to drive strong sell-through, valuation keeps us on the sidelines.”

DTS, Inc. currently trades at $42.30.