Update shared on06 Sep 2025
Fair value Decreased 7.04%Despite Dolby Laboratories' durable business model, growing licensing revenues, and long-term growth potential from strategic partnerships, analysts have trimmed the price target from $103.00 to $95.75 due to uninspiring device markets, macroeconomic uncertainty, and a lack of near-term catalysts.
Analyst Commentary
- Growing licensing revenues and increased adoption across key markets support positive sentiment.
- Expanded strategic partnerships are expected to drive long-term growth.
- The business is seen as durable, playing an important role in the media ecosystem.
- Device end markets are viewed as relatively uninspiring, limiting upside potential.
- Current macroeconomic uncertainty and a lack of near-term catalysts create caution among some analysts.
What's in the News
- Dolby announced Dolby Vision 2, an advanced HDR technology with first adoption by Hisense and CANAL+, featuring AI-based Content Intelligence, enhanced tone mapping, and new cinematic motion controls for TVs.
- New Line Cinema’s “IT” is set for exclusive one-night screenings at Dolby Cinema and Dolby Atmos venues globally, tying into the debut of the upcoming HBO Original series "IT: Welcome to Derry".
- Dolby began integration of Dolby Atmos in select Audi models starting July 2025, including Q7, Q8, A8, and e-tron GT, in partnership with Bang & Olufsen and Audi’s multimedia interface.
- Dolby, Lenovo, and Google introduced the first Chromebook with Dolby Atmos, the Lenovo Chromebook Plus (14”), expanding immersive audio to the Chromebook market.
- Dolby repurchased 526,033 shares for $39.99 million, bringing total buybacks since 2009 to 51.79 million shares (50.12% of shares outstanding, totaling $2.99 billion).
Valuation Changes
Summary of Valuation Changes for Dolby Laboratories
- The Consensus Analyst Price Target has fallen from $103.00 to $95.75.
- The Consensus Revenue Growth forecasts for Dolby Laboratories has significantly fallen from 4.5% per annum to 4.0% per annum.
- The Future P/E for Dolby Laboratories has fallen from 38.05x to 35.34x.
Disclaimer
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