10:50 AM EDT, 05/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our price target by $24 to $65, utilizing a P/E ratio of 16.5x applied to our FY 25 (Sep.) EPS estimate of $3.94. This multiple is below DLB's five-year average (six-month forward) P/E multiple of ~18x, justified by elevated market uncertainty that we expect to present significant uncertainty to DLB's results, with more downside than upside (in our view) given the potential for volumes to quickly shift downwards as a result of higher prices. Following FQ2 earnings, we lower our FY 25 EPS view by $0.22 to $3.94 and FY 26 by $0.26 to $4.08. Despite a minimal direct tariff impact, we think DLB remains exposed to a quick volume/shipment decline in the coming quarters given the consumer-facing nature of its customers' end products. We note that roughly 25% of the company's licensing revenue is derived from end products that travel into the U.S. from abroad, which we consider to present material revenue risks in the event of a slowdown, owing to higher prices or elevated uncertainty.