RE: Sounds a bit expensive...At the beginning of the month, Dolby actually raised FY2008 earnings estimates to $170 - $182million. Put this statment together with the anaylst upgrades, and we can infer that the company will actually be able to meet all its FY2008 requiresments. Also, consider that in the Daventport rating upgrade, the anaylst expects Dolby to sustain revenues stream even in tougher economic conditions since Dolby generates consistent royalty revenue from licensing.
All looks good from here.