Analyst Keeps Dolby Buy Rating as Dolby Vision Goes Mainstream in $50 Stick

Dougherty & Co. analyst Steven Frankel maintained a buy rating on Dolby, in a research note to investors Wednesday before the company’s Oct. 24 quarterly earnings report, but he warned the company’s switch to ASC 606 reporting guidelines could “complicate” FY 19 guidance. During the quarter, Dolby expanded its ecosystem, going mainstream with the Dolby Vision-enabled Amazon 4K Fire TV stick ($50) and several new Atmos sound bars. Frankel also cited a growing number of Dolby Vision titles from iTunes and Netflix, along with enhanced device support on the Xbox One and Apple TV 4K.