B. Riley Upgrades DreamWorks Animation (DWA) to Buy

B. Riley upgraded DreamWorks Animation (NASDAQ: DWA) from Neutral to Buy with a price target of $26.00, saying they see an attractive entry point heading into a stronger 2016 film slate and improving profitability.

Analyst Eric Wold commented, "With DreamWorks Animation shares down 36% since their recent peak in early June (including a decline of 25% since we lowered estimates pre-Q2 print), they have now actually moved below the level seen earlier this year when the restructuring plan was announced even though numerous positive developments have occurred since then that have helped, in our opinion, to boost the studio’s profitability outlook heading into 2016."

He continued, "While Home was a surprise box office hit, we admit DWA still has much to prove with the revamped slate focus and reduced overhead structure. Nevertheless, we view the pullback in the shares as an attractive entry point forestors with a longer-term focus as the turnaround year progresses further. Therefore, we are upgrading DWA from Neutral to Buy with an unchanged price target of $26.00."

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 $19.08 yesterday.

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