Collins Stewart Reiterates Neutral, $35 Target on Dolby

Collins Stewart maintains its Neutral rating and $35 target price on Dolby (NYSE: DLB) as the company reports in-line results for its December quarter.

Collins Stewart says, "DLB reports inline FQ1'12 (Dec) results and maintains its FY'12 (Sept) outlook, despite concerns of HDD shortages impacting the PC market, as prior guide had incorporated this risk. Despite encouraging progress in smartphones, emerging markets TV (China & India), and streaming content, the secular decline in optical (DVD and PC Ultrabooks) and pending exclusion from Windows 8 remain headwinds. We see minimal growth prospects over the next 12 months."

DLB closed at $36.37 a share on Tuesday.