The entertainment products provider announced on Tuesday that it sued ArcSoft, one of its licensees, for not meeting contractual obligations."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," Collins Stewart analysts wrote in a Feb. 8 report. They added, "Due to the increased stock repurchase program, we are raising our 2012 EPS ests from $2.54 to $2.56 vs. consensus ests of $2.54. Additionally, we are raising our 2013 EPS ests from $2.39 to $2.43 vs. consensus ests of $2.46." Dolby Laboratories was upgraded to buy from hold by TheStreet Ratings. "The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and notable return on equity," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Dolby Laboratories has a forward P/E of 13.94; the average for broadcasting and entertainment companies is 14.43. For comparison, Sirius (SIRI) and Cablevision (CVC) have forward P/Es of 22.29 and 12.52, respectively. Seven of the 13 analysts who cover Dolby Laboratories rated it a hold; the other six gave it a buy rating. TheStreet Ratings gives Dolby Laboratories a B grade with a $43.15 price target. The stock closed Wednesday at $38.09 and has increased 24.84% year to date.
Mack-Cali Realty The real estate investment trust reported last week fourth-quarter earnings of $16.1 million, or 18 cents a share, an increase from year-earlier earnings of $6.6 million, or 9 cents. "While the suburban office markets remain challenging for any landlord, CLI continues to execute, maintaining occupancy levels well above market averages," Keefe, Bruyette & Woods analysts wrote in a Feb. 9 report. "With its fortress-like balance sheet (debt to mkt cap 42%) and premium yield (6.2%), we believe CLI has defensive attributes in a difficult environment." Shares of Mack-Cali were upgraded to buy from hold by TheStreet Ratings. Mack-Cali has a forward P/E of 37.13; the average for industrial and office REITs is 70.75. For comparison, Vornado Realty Trust (VNO) and Boston Properties (BXP) both have higher forward P/Es of 41.22 and 61.73, respectively. Of the 13 analysts who cover Mack-Cali, seven rated it a hold. Three analysts gave it a buy rating and another three rated it a sell. TheStreet Ratings gives Mack-Cali a B- grade with a $33.07 price target. The stock closed Wednesday at $28.59 and has risen 7.12% year to date.
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