Dolby Laboratories stock price target raised to $114 by Tigress Financial

Investing.com - Tigress Financial Partners has raised its price target on Dolby Laboratories (NYSE:DLB) to $114.00 from its previous target, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading below its Fair Value, suggesting potential upside opportunity. The company maintains strong financials with an impressive gross profit margin of 88.5%.

The research firm cited Dolby’s solid growth in licensing revenues and strong adoption across key markets as primary factors behind the increased target. Tigress Financial also highlighted the company’s resilient gross margins and ongoing innovation in immersive media as elements that will continue to drive long-term growth. InvestingPro analysis reveals the company has maintained dividend payments for 12 consecutive years, with a current yield of 1.82%.

Dolby’s high-margin licensing business model, coupled with its immersive audio and video enhancement technology across various devices and platforms, is expected to drive accelerating business performance trends, according to the research note. These trends include increasing return on capital and greater economic profit. The company’s strong financial position is evidenced by its healthy balance sheet, with more cash than debt and liquid assets exceeding short-term obligations. For deeper insights into Dolby’s financial health and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

The audio technology company is expanding its footprint in the automotive sector, transforming vehicles into immersive entertainment hubs. This represents a major growth vertical in what Tigress describes as a multibillion-dollar addressable market.

Tigress Financial also noted that Dolby is actively embedding AI across all of its platforms, driven by Dolby OptiView to deliver real-time, ultra-low-latency, high-quality streaming and gaming experiences. The firm has included Dolby Laboratories on its Research Focus List and Focus Opportunity Portfolio.

In other recent news, Dolby Laboratories reported impressive third-quarter earnings for 2025, surpassing both revenue and earnings per share (EPS) forecasts. The company achieved an EPS of $0.78, exceeding the projected $0.71. Dolby also generated $316 million in revenue, surpassing the forecasted $305.23 million. These results indicate a strong performance for the company in the recent quarter. Despite the positive earnings report, Dolby’s stock experienced a slight dip in after-hours trading. The company’s financial results reflect mixed investor sentiment. These developments are crucial for investors to consider when evaluating Dolby Laboratories.

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