Janney Capital Downgrades DreamWorks Animation (DWA) to Sell

Janney Capital downgraded DreamWorks Animation (NASDAQ: DWA) from Neutral to Sell with a price target of $18.00 after the company announced a restructuring plan after the close.

Analyst Tony Wible commented, "DWA's latest restructuring will stress earnings and introduce another layer of uncertainty as it is laying off 18% of its workforce, pushing out projects, and taking $290 million of write downs as it struggles with the lack of hits/profits in the Film division. The situation undermines growth for two years and will start to spark liquidity concerns that hurt equity value. We are downgrading from Neutral to Sell as we see higher risk and little growth from Film until 2017 - albeit BVPS and M&A may provide downside support. "

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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