UPDATE: J.P. Morgan Downgrades DTS; Lowers PT

According to a research report published this morning, J.P. Morgan has downgraded DTS

from Neutral to Underweight, and lowered PT from $30.50 to $28.50. In the report, J.P. Morgan said, "We believe the stock is close to fully-valued, lacks upside catalysts in the near-term, and the company is exposed to incremental risk associated with the pending SRS acquisition and the threat associated with Dolby's growing momentum as a de facto standard for internet video. No change to estimates but our Price Target goes to $28.50 based on a lower multiple to reflect these risks. We are also downgrading competitor Dolby (DLB) to Neutral today, owing to lack of catalysts." DTS is currently trading at $27.16.