Dolby Laboratories

DLB · NYSE

$62.31+$1.25 (+2.05%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $61.06

DLB analyst rating

BuyConsensus of 2 analysts over the last 12 months. 100% rate it a buy.

Strong buy0
Buy2
Hold0
Underperform0
Sell0

12-month price target · 5 analysts

Average $81.88 (+31.4% upside)

Low: $62.62
Now: $62.31
High: $94.50

Upgrades and downgrades

The latest rating actions, newest first

DLB analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Rosenblatt	Aug 28, 2026	Maintains	Buy	$85.00	13%
Rosenblatt	Jul 31, 2026	Maintains	Buy	$85.00	13%
Barrington Research	Jun 15, 2026	Maintains	Outperform	$90.00	58%
Rosenblatt	Jun 11, 2026	Maintains	Buy	$85.00	13%
Barrington Research	Apr 27, 2026	Maintains	Outperform	$90.00	58%
Barrington Research	Jan 30, 2026	Maintains	Outperform	$90.00	58%
Rosenblatt	Jan 30, 2026	Maintains	Buy	$85.00	13%
Barrington Research	Jan 26, 2026	Maintains	Outperform	$95.00 → $90.00	58%
Rosenblatt	Jan 22, 2026	Maintains	Buy	$85.00	13%
Rosenblatt	Nov 19, 2025	Maintains	Buy	$95.00 → $85.00	13%

The case for and against

Updated Oct 14, 2026

Bull case

Dolby Laboratories is well positioned fundamentally because it is shifting its mix toward higher-royalty technologies such as Atmos, Vision, and Image Patent Licensing, which are growing about 15% to 20% and have risen from 23% of License Revenue in FY21 to approaching 50% today. Its moat is reinforced by broadening adoption across 4K TVs, automobiles, mobile devices, streaming partners, and emerging offerings like VDP and OptiView, creating more revenue streams that are less dependent on unit shipments. Despite a challenged macro backdrop, the company continues to execute, generate strong cash flow, support shareholder returns with a $1.44 annual dividend and repurchases, and trades at 13.5x CY27 EPS.

Bear case

Dolby Laboratories is facing a negative outlook because its core licensing revenue is highly dependent on accurately predicting device shipments, leaving results exposed to supply chain disruptions and semiconductor shortages that can inhibit attachment to new devices. Soft device volume trends since the pandemic-related buying boost have pressured foundational revenues, and OEM renewal timing can create lumpiness and quarter-to-quarter volatility, limiting visibility into near-term performance. While Atmos, Vision, and Imaging patents support some growth, the business still relies on broad consumer-device adoption and minimum volume commitments only partially offset weakness in a challenging macro and chip-availability environment.

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