UPDATE: J.P. Morgan Upgrades DTS to Neutral, Reiterates $19.50 PT

In a report published Monday, J.P. Morgan & Co. upgraded its rating on DTS (NASDAQ: DTSI) from Underweight to Neutral, and reiterated its $19.50 price target.

J.P. Morgan noted, “We are upgrading DTSI to Neutral. DTSI is trading at 11.6 times CY13E PF EPS of $1.28, a multi-year trough-level, and looks somewhat undervalued, though risks remain elevated. The stock, which typically trades at a P/E premium to its nearest peer, DLB, is now trading at a lower P/E multiple. We think risk-reward is now balanced and we expect the stock to perform in line with the mean of our coverage universe in the next 6-12 months. Our December 2013 price target remains $19.50.”

DTS closed on Friday at $14.80.

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