DreamWorks (DWA) Sell Rating Maintained at Goldman Sachs

Goldman Sachs maintained a Sell rating on DreamWorks Animation (NASDAQ: DWA) with a price target of $18. Comments follow its announcement related to film restructuring.

Analyst Drew Borst said, "The restructuring fails to address the high production cost for DWA’s films; high in terms of animation peers and high relative to the DWA’s recent box office performance. DWA hopes that focusing its creative resources (i.e., writers) on fewer films will result in improved storytelling and therefore improved box office. The first test case would appear to be in 2016 – at the earliest."

"We adjust our 2015E/16E EBITDA to $21.3 mn/$178.1 mn from $69.1 mn/$177.9 mn to reflect the write-offs, restructuring charges and valuation allowance," he added.

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 $21.31 yesterday.

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