William Blair analyst Ralph Schackart has maintained their bullish stance on DLB stock, giving a Buy rating yesterday.
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Ralph Schackart has given his Buy rating due to a combination of factors that highlight Dolby Laboratories’ potential for growth and revenue expansion. The company’s recent focus on new monetization opportunities, such as streaming and auto revenue scaling, along with partnerships with platforms like Instagram, indicates a strategic shift towards more dynamic revenue streams. This shift is expected to drive growth and improve margins, despite current macroeconomic challenges.
Furthermore, Dolby’s historical business composition shows a promising return to growth, with a 6% revenue increase in 2025 and expectations for continued organic growth in 2026. The company’s licensing revenue, which makes up the majority of its income, is diversifying with newer products like Dolby Atmos and Dolby Vision. These products are anticipated to significantly contribute to revenue, especially as the company explores new consumption-based business models that could add 10% to its revenue. This strategic diversification and innovation in revenue models underpin Schackart’s optimistic Buy rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $75.00 price target.