Collins Stewart Remains Neutral on Dolby's Stock Repurchase Announcement

Collins Stewart has published a research report on Dolby Laboratories

after the company's recent increased stock repurchasing. In the report, Collins Stewart writes, "DLB announced today that it is increasing its stock repurchase program by an additional $100 million, bringing the approximate amount available for future repurchases of Dolby's Class A Common Stock to $436 million. As a result of changes to its stock repurchase program, DLB is increasing its EPS guidance with respect to its diluted shares outstanding and diluted earnings per share for fiscal 2012. Dolby's target with respect to diluted shares outstanding is being revised from approximately 110 million to approximately 108 million. This revised target leads to an updated fiscal 2012 diluted earnings per share target range of $2.35 to $2.66 on a GAAP basis (from $2.31 to $2.61) and $2.76 to $3.07 on a non-GAAP basis (from $2.71 to $3.02)." Collins Stewart maintains its Neutral rating and $35 price target on Dolby Laboratories, which is currently trading up $0.33 from yesterday's $37.97 closing price.