B. Riley Raises Price Target on DreamWorks Animation SKG (DWA) Ahead of 2Q Results

B. Riley reiterated a Neutral rating in DreamWorks Animation (NASDAQ: DWA), and raised the price target to $26.00 (from $24.00), ahead of 2Q results. Analyst Eric World remains positive that the restructuring and refocusing moves announced earlier this year has the potential for improving base level profitability in the coming years. DWA is scheduled to release its earnings on August 4th, after market closes.

World commented, "DreamWorks Animation is scheduled to report Q2 results on Tuesday, 8/4 after the market close – and, ahead of that print, we are lowering our Q2 estimates while making positive adjustments to our forward box office and profitability projections. While the box office success of Home does not completely offset the failed theatrical release record of recent years, we remain positive that the restructuring and refocusing moves announced earlier this year by management, stronger liquidity position and increased likelihood that DreamWorks will begin 2016 with the highest grossing film for the studio in years, we are increasingly optimistic about the potential for improving base level profitability in the coming years. Nevertheless, we believe the current valuation appropriately reflects our 2016 estimates and are maintaining our Neutral rating (while raising our price target from $24.00 to $26.00)."

For an analyst ratings summary and ratings history on DreamWorks Animation click here. For more ratings news on DreamWorks Animation click here.

Shares of DreamWorks Animation closed at $25.40 yesterday.

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