B. Riley Raises Price Target on DreamWorks Animation SKG (DWA) Following a Strong 4Q Beat

B. Riley reiterated a Neutral rating on DreamWorks Animation (NASDAQ: DWA), and raised the price target to $26.00 (from $25.00), following the company's 4Q earnings report. Revenues and adjusted EPS of $319MM and $0.55 came in well above consensus estimates of $274MM and $0.16.

Analyst Eric Wold commented, "DreamWorks Animation reported significant Q4 upside results as the benefits of diversifying business trends and past franchise monetization opportunities are beginning to bear fruit on the more optimized cost structure in place following last year’s restructuring efforts. While we continue to believe the refocused release schedule and enhanced overhead structure/balance sheet boosts the potential for improved profitability into 2016/2017+, we are slightly more cautious on the box office outlook for Kung Fu Panda 3 (“KFP3”) as we are with the remainder of the film slate over the next 12 months. Therefore, given investors remain focused on film-based headlines, we would not be surprised if this held back shares somewhat as visibility around the other segments continues to ramp. We are maintaining our Neutral rating with a new price target of $26.00 (up from $25.00)."

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 $21.06 yesterday.

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