Should I Buy DLB? DLB 2026 Analysis

Should You Buy Dolby Laboratories Inc (DLB) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

64.850

1 Day change

1.38%

52 Week Range

85.450

Analysis Updated At

2026/02/04

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Buy now (tactical momentum buy): DLB is showing improving near-term technical momentum (positive, expanding MACD) and strong relative strength today (+4.31% while S&P 500 is -1.02%).
Upside path is close but tradable: Price is above the pivot (62.626) and pressing toward resistance at R1 ~64.54 then R2 ~65.72; momentum supports a continuation attempt.
Sentiment skew is bullish via options positioning (very low put/call OI ratio), suggesting market participants are positioned for upside/limited downside.
Fundamentals are mixed: guidance beat/raise and auto partnership are positives, but latest quarter shows YoY declines in revenue, EPS, and net income—so this is more of a momentum/quality-franchise buy than a "growth accelerating" buy.

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock today.

Technical Analysis

Trend/Momentum: MACD histogram +0.209 and expanding → bullish momentum building.
RSI: RSI_6 55.8 (neutral) → not overbought; still room to run if momentum persists.
Moving averages: Converging MAs → often precedes a directional move; today’s strength favors an upward resolution.
Key levels:
- Pivot 62.626 (now acting as near-term support)
- Resistance: 64.54 (R1) then 65.72 (R2)
- Supports: 60.71 (S1) then 59.53 (S2)
Pattern-based forward bias (from provided model): modest positive drift expectations (next month skew +5.75%), supportive of a buy-if-impatient approach.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Open interest put/call ratio 0.14 → heavily call-skewed (bullish sentiment/positioning).
Activity today: Call volume 101 vs put volume 0; volume put/call 0.0 → one-sided bullish flow.
Volatility: 30D IV ~22.78 with IV percentile ~3.59 / IV rank ~5.86 → options are priced cheaply vs recent history (often consistent with post-event IV compression and/or reduced fear).
IV trend: IV is well below 5D/10D averages (30.76 / 32.66) → volatility has cooled; directional moves may be less explosive but sentiment remains skewed bullish.

Technical Summary

Sell

Buy

Positive Catalysts

- Q1 results beat prior guidance (non-GAAP): Reported Q1 revenue ~$347M and non-GAAP EPS $1.06, exceeding prior guidance.
- Raised full-year revenue guidance: Increased outlook to $1.4B–$1.45B, supporting improved forward expectations.
- Strategic catalyst: Partnership with Qualcomm to expand Dolby’s footprint in automotive, a potential multi-year licensing tailwind.
- Shareholder return support: Quarterly dividend maintained at $0.36/share, reinforcing stability/quality profile.

Neutral/Negative Catalysts

- GAAP profitability pressure (latest quarter YoY): Net income and EPS declined materially, which can cap multiple expansion.
- Revenue softness: Reported revenue down YoY, indicating near-term demand/royalty pressure despite the guidance raise.
- Near-term technical ceiling: Price is approaching R1/R2 resistance zones (64.54–65.72), where pullbacks are common if momentum stalls.
- Flow risk: Extremely call-skewed positioning can sometimes precede short-term “buy the rumor, sell the news” type digestion if expectations get crowded.

Financial Performance

Latest quarter: 2026/Q1
- Revenue: $346.706M (-2.88% YoY)
- Net Income: $53.327M (-21.37% YoY)
- EPS: $0.55 (-21.43% YoY)
- Gross Margin: 87.54% (-1.17% YoY) (still extremely high margin, slight compression)
Takeaway: High-margin licensing model remains strong structurally, but growth/profitability slowed YoY; the bullish case leans on guidance raise + catalysts (auto) + improving price momentum.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No recent analyst rating changes or price target revisions were provided in the data.
Wall Street-style pros (based on provided fundamentals/news): high-margin licensing economics, guidance raise, new auto/Qualcomm expansion vector, consistent dividend.
Wall Street-style cons: YoY declines in revenue/EPS/net income and slight margin compression; near-term performance depends on re-acceleration and execution on automotive expansion.
Influential/political trading check:
- Hedge funds: Neutral (no significant trends last quarter)
- Insiders: Neutral (no significant trends last month)
- Congress trading (last 90 days): No data available

3 Analyst Rating

Wall Street analysts forecast DLB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DLB is 90 USD with a low forecast of 85 USD and a high forecast of 95 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

0 Hold

0 Sell

Strong Buy

Current: 63.970

Low

Averages

High

Current: 63.970

Low

Averages

High

Baird

Neutral

initiated

$74

AI Analysis

2025-09-05

Reason

Baird

Price Target

$74

AI Analysis

2025-09-05

initiated

Neutral

Reason

Baird last night initiated coverage of Dolby with a Neutral rating and $74 price target. The firm believes Dolby has a durable business that should continue to play an important role in the media ecosystem. However, the device end markets \"remain relatively uninspiring\" and the current macro environment creates uncertainty, the analyst tells investors in a research note. As such, Baird sees a lack of near-term catalysts for Dolby.

Baird

Vikram Kesavabhotla

Neutral

initiated

$74

2025-09-04

Reason

Baird

Vikram Kesavabhotla

Price Target

$74

2025-09-04

initiated

Neutral

Reason

Baird analyst Vikram Kesavabhotla initiated coverage of Dolby with a Neutral rating and $74 price target.

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DLB Should I Buy

DLB Should I Buy

Should You Buy Dolby Laboratories Inc (DLB) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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