J.P. Morgan Maintains Underweight on DTS

J.P. Morgan is out with its report today on DTS

, maintaining Underweight. In its report, J.P. Morgan writes, "We are cautious on DTSI going into the print given weakening CE demand in North America and Europe. We believe stand-alone Blu-Ray players and media devices will continue to grow rapidly, offset by slackening sales of legacy home A/V equipment. We believe DTSI is on track for solid growth and modest operating margin improvement in 2011, but we believe this is reflected in the stock's still-buoyant multiple, and consumer electronics demand is panning out lower than anticipated. Maintain Underweight rating owing to risk to EPS forecasts and based on valuation." J.P. Morgan maintains a $26 PT on DTSI. Shares of DTSI closed Monday at $28.09, down 4.62% from Friday's close.