Barclays Maintains an 'Underweight' on DreamWorks Animation (DWA); Solid 3Q But Few Catalysts in the Works
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Price: $40.97 --0%
Rating Summary:
3 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 6 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Underweight' on DreamWorks Animation (NASDAQ: DWA) price target lowered $1 to $17.00.
Barclays analyst says, "DWA reported 3Q earnings slightly ahead of our estimates and consensus, as higher-than-expected library revenues and a lower tax rate drove EPS upside in the quarter. While 3Q results were not particularly impactful, management did provide some commentary on the recently-struck output deal with NFLX, in addition to its film distribution strategy. However, without any new catalysts to change our longer-term fundamental outlook for the company, we are maintaining our 3-UW rating. We are also lowering our price target to $17, given recent macro weakness weighing on shares; our new price target implies an 11x multiple on 2012 EPS of $1.55."
"We lowering 4Q estimate to $0.48 from $0.52, mainly to reflect a faster amortization rate for costs associated with Megamind int'l pay TV revenue. Flowing through the 3Q beat and lower 4Q estimates, our FY'11 estimate of $1.22 remains unchanged."
For more ratings news on DreamWorks Animation click here and for the rating history of DreamWorks Animation click here.
Shares of DreamWorks Animation closed at $18.31 yesterday.
Barclays analyst says, "DWA reported 3Q earnings slightly ahead of our estimates and consensus, as higher-than-expected library revenues and a lower tax rate drove EPS upside in the quarter. While 3Q results were not particularly impactful, management did provide some commentary on the recently-struck output deal with NFLX, in addition to its film distribution strategy. However, without any new catalysts to change our longer-term fundamental outlook for the company, we are maintaining our 3-UW rating. We are also lowering our price target to $17, given recent macro weakness weighing on shares; our new price target implies an 11x multiple on 2012 EPS of $1.55."
"We lowering 4Q estimate to $0.48 from $0.52, mainly to reflect a faster amortization rate for costs associated with Megamind int'l pay TV revenue. Flowing through the 3Q beat and lower 4Q estimates, our FY'11 estimate of $1.22 remains unchanged."
For more ratings news on DreamWorks Animation click here and for the rating history of DreamWorks Animation click here.
Shares of DreamWorks Animation closed at $18.31 yesterday.
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