DTS Given New $14.00 Price Target at Piper Jaffray (DTSI)
Investment analysts at Piper Jaffray cut their target price on shares of DTS (NASDAQ: DTSI) from $16.00 to $14.00 in a note issued to investors on Tuesday. The firm currently has an “underweight” rating on the stock.
The analysts wrote, “Q4 revenue came in lower than expected, but the company exceeded PF EPS based on opex reductions. For CY13, the company guided revenue & EPS essentially in-line with consensus, but weaker than expected Q1 guidance implies a back-end loaded year. ForQ1, based on weakness in broader CE end markets, the company is expecting revenue to be flat sequentially, compared to consensus of +12% q/q. DTS continues to diversify away from Blu-ray (25% of revenue in 4Q vs. 30% in 3Q); network connected devices comprised 40% of revenue for the quarter. We continue to take a wait-and-see approach to the long-term (1-2 years) due to DTS’ position as an optional standard on connected devices compared to its mandatory inclusion in Blu-ray, which will fade longer-term (company expects Blu-ray will peak in 2015-2016). Additionally, the back-end loaded nature of the outlook increases the risk to full year estimates.”
DTS traded down 7.52% on Tuesday, hitting $18.995. DTS has a 52-week low of $13.90 and a 52-week high of $32.00. The stock’s 50-day moving average is currently $19.6. The company’s market cap is $348.2 million.
DTS last issued its quarterly earnings data on Monday, March 11th. The company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.18. The company had revenue of $29.80 million for the quarter, compared to the consensus estimate of $31.16 million. During the same quarter in the prior year, the company posted $0.52 earnings per share. The company’s quarterly revenue was up 2.8% on a year-over-year basis. DTS has set its FY13 guidance at $1.05-1.20 EPS. Analysts expect that DTS will post $1.12 EPS for the current fiscal year.
Separately, analysts at Zacks upgraded shares of DTS from an “underperform” rating to a “neutral” rating in a research note to investors on Wednesday, January 9th. They now have a $17.60 price target on the stock.
One research analyst has rated the stock with a buy rating, three have given a hold rating, and one has given a sell rating to the stock. DTS presently has a consensus rating of “hold” and an average target price of $17.83.
DTS, Inc. is a provider of branded entertainment technologies, which are incorporated into an array of entertainment products by licensee customers worldwide.
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