Fulcrum Upgrades Dreamworks
Fulcrum upgrades Dreamworks Animation (DWA ) to buy from neutral.
Analyst Richard Greenfield says with the stock's recent pullback (trading at its lowest level post-IPO), he believes its valuation is now attractive, particularly with near-term catalysts.
He notes that while he worries about creative mistakes company has made in past, he believes Dreamworks is the most attractive component of the media value (food) chain. With distribution outlets expanding in the digital age, he believes its content is only becoming more valuable, with CGI-animated content of even greater value, given that consumers appear to be enamored with this form of content, at least near-term.
Greenfield sets a $40 target.