Dreamworks Animation “buy,” estimates reduced

02/13/07 - Banc of America

NEW YORK, February 14 (newratings.com) - Analyst Michael Savner of Banc of America Securities maintains his "buy" rating on Dreamworks Animation SKG Inc (DWA), while reducing his estimates for the company. The target price is set to $37.

In a research note published yesterday, the analyst mentions that there is no change to the long-term prospects of the company’s stock. Dreamworks Animation is poised to release two major films in the current year, the analyst says. With the completion of the B.O. run of its Flushed Away movie, the company is expected to take a write-down of $116 million in 4Q06, Banc of America Securities adds. The EPS estimate for 4Q06 has been reduced from $0.21 to -$0.43.