DreamWorks Rises on Upgrade Over ‘Guardians,’ Output: L.A. Mover
DreamWorks Animation SKG Inc. (DWA), maker of the “Shrek” films, rose the most since June after an analyst upgraded the stock, citing the November film “Rise of the Guardians,” a boost in production and higher TV profit.
DreamWorks Animation, based in Glendale, California, gained 3.8 percent to $18.38 at the close in New York, the biggest advance since a 5 percent rise on June 27.
Tony Wible, an analyst at Philadelphia-based Janney Montgomery Scott LLC, raised his rating on DreamWorks Animation to neutral from sell in a note today. The rating means Janney views the stock as fairly valued and likely to perform in line with comparable companies.
“Rise of the Guardians,” set for release Nov. 21, may be a much-needed hit for DreamWorks Animation, Wible said. The company is boosting production to at least three domestic films a year and could make more through its Oriental DreamWorks venture. The company may also benefit from higher TV revenue under a new film distribution accord, he said.
To contact the reporter on this story: Rob Golum in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Anthony Palazzo at email@example.com