UPDATE: Janney Montgomery Scott Downgrades Digital Domain Media Group (DDMG) to Neutral; A Lot to Overcome

August 16, 2012 7:16 AM EDT
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Price: $0.55 --0%

Rating Summary:
    0 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 13
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(Updated - August 16, 2012 7:28 AM EDT)

Janney Montgomery Scott downgraded Digital Domain Media Group (NYSE: DDMG) from Buy to Neutral with a price target of $5.00 (from $10.00).

Analyst, Tony Wible, said, "DDMG stands to benefit from new VFX production capacity and its transition towards becoming a full production animation studio. The legacy VFX business should grow, but more importantly it allows the company to produce high quality content for less, while its move into education provides stability, access to talent, and low cost labor. In the interim, DDMG will need to overcome expense headwinds that lead us to reduce our estimates and fair value. The upside at current levels is more in line with a Neutral rating. We note that our numbers do not assume VFX margins will fully rebound and would be conservative if DDMG managed to do so."

FY12 EPS estimate lowered from (0.92) to (0.99) and FY13 from (0.11) to (0.44)

For an analyst ratings summary and ratings history on Digital Domain Media Group click here. For more ratings news on Digital Domain Media Group click here.

Shares of Digital Domain Media Group closed at $4.22 yesterday.

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