S&P Capital IQ Maintains its STRONG BUY Rating on DreamWorks Animation

October 28 00:00 2011

New York, October 28 (RainbowNewsLine.com) – Analyst Tuna Amobi of S&P Capital IQ reiterates his STRONG BUY rating on the shares of DreamWorks Animation (NASDAQ: DWA). The target price is set to be $28.

Analyst Tuna Amobi, in a research report published yesterday mentions that the company has reported its Q3 EPS short of the estimate and above the consensus, despite of the tough competition with Shrek 4. DreamWorks Animation’s Q3 results were driven primarily by the success of Kung Fu Panda 2 on International Box Office while Megamind on Domestic Pay TV. The company has affirmed the benefits of the deal with Netflix. Although the financial details are not announced, the deal will lead to potential strategic opportunities given the consideration of wide range of options on core distribution by spring 2012. The company’s stock is expected to be driven by the release of Puss In Boots, DVDs of Kung Fu Panda 2 and contributions from film library/TV specials, the analyst adds.