Janney Montgomery Scott on DreamWorks Animation (DWA): Acquisition of Classic Media A Step in Right Direction
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Price: $21.74 --0%
Rating Summary:
2 Buy, 5 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
2 Buy, 5 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade DWA Now!
Janney Montgomery Scott maintains a 'Sell' on DreamWorks Animation (NASDAQ: DWA) price target of $16.00 (from $15.00).
Analyst, Tony Wible, said, "We Rate DWA SELL, as we are concerned about the decay in film performance, FX headwinds, and the possible cannibalization from the NetFlix (Nasdaq: NFLX) deal. These concerns are exacerbated by the steep decline in DWA's DVD sales but are partly tempered by better international demand, the near term boost from NFLX catalog sales, strong non-film performance, and the potential for self-distribution savings in 2013. On balance, we believe estimates still need to move lower and see the risk/reward on the stock in favor of a Sell rating. However, the accretion of the deal with Classic Media leads us to increase estimates and our fair value to $16 from $15 and leaves us incrementally more positive on the stock." (JMS also raises FY12/13 EPS estimate by $0.02/0.05)
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 $19.16 yesterday, with a 52 week range of $16.34-$22.38.
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Analyst, Tony Wible, said, "We Rate DWA SELL, as we are concerned about the decay in film performance, FX headwinds, and the possible cannibalization from the NetFlix (Nasdaq: NFLX) deal. These concerns are exacerbated by the steep decline in DWA's DVD sales but are partly tempered by better international demand, the near term boost from NFLX catalog sales, strong non-film performance, and the potential for self-distribution savings in 2013. On balance, we believe estimates still need to move lower and see the risk/reward on the stock in favor of a Sell rating. However, the accretion of the deal with Classic Media leads us to increase estimates and our fair value to $16 from $15 and leaves us incrementally more positive on the stock." (JMS also raises FY12/13 EPS estimate by $0.02/0.05)
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 $19.16 yesterday, with a 52 week range of $16.34-$22.38.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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