Positive Growth Outlook for Dolby Laboratories Driven by Dolby Atmos and Dolby Vision

William Blair analyst Ralph Schackart has maintained their bullish stance on DLB stock, giving a Buy rating on May 15.

Ralph Schackart has given his Buy rating due to a combination of factors that highlight Dolby Laboratories’ potential for growth and revenue generation. One of the primary reasons is the company’s strategic focus on Dolby Atmos and Dolby Vision, which are gaining traction in the market and are expected to drive significant growth. The management’s optimism about future growth prospects, despite macroeconomic uncertainties, further supports this positive outlook.
Additionally, the company’s licensing revenue, which constitutes a major portion of its total revenue, is poised for a rebound. With about 60% of this revenue being foundational and driven by global shipment volumes, the stabilization of these volumes is crucial for growth. The newer products, such as Dolby Atmos and Dolby Vision, are projected to grow by approximately 15% in fiscal 2025, supported by investments in the music industry and automotive sector, where Dolby Atmos is increasingly being adopted by auto manufacturers.

In another report released on May 15, Tigress Financial also initiated coverage with a Buy rating on the stock with a $112.00 price target.