William Blair & Company Initiates Coverage on DreamWorks Animation (DWA) with a Market Perform

November 24, 2008 12:40 PM EST

William Blair & Company initiates coverage on DreamWorks Animation (NYSE: DWA) with a Market Perform Rating.

William Blair analyst says, "We believe DreamWorks is the leading way to play the attractive CGI (computer-generated imagery) animation space. Two of the top 16 movies of all time are CGI animated, and this is still a relatively new technology. Family-oriented movies are the sweet spot of Hollywood, and DreamWorks’ movies appeal to a wide audience. We believe DreamWorks’ movies have long-term staying power in family libraries and are some of the most repeatable library movies...Risks could include: The hit-driven business model, limited visibility, and competitive market constitute key risks, in our view; in addition, it is difficult to monetize digital content at this point, and we believe the company is making a big bet on 3-D."

DreamWorks Animation SKG, Inc. (DreamWorks Animation) is engaged in developing and producing computer-generated (CG) animated feature films. [SM]


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