Pixar, DreamWorks Shake Off DVD Blues

The two stocks rise as investors await new flicks.
Author:
Publish date:

Investor nervousness over recent DVD debacles at the two major animation studios appeared to have calmed Friday.

Shares in

Pixar

(PIXR)

were way up Friday on the back of an analyst upgrade.

Credit Suisse First Boston lifted its rating on the Emeryville, Calif., studio to outperform from neutral. It raised its target price to $55 from $44, citing anticipation over its next big release

Cars

, which is due in June 2006, and the expected announcement of its next slate of films.

Shares were up close to 9% to $48.34 in late trading Friday.

Pixar, the producer of a long list of animated hits including

Toy Story

,

Finding Nemo

and most recently

The Incredibles

, hit a small rough patch recently when it, like

DreamWorks Animation

(DWA)

warned of an earnings shortfall on the basis of DVD returns at retail.

Shares in DreamWorks, meanwhile, were also up significantly on Friday, perhaps in anticipation of its latest release

Wallace & Gromit

, which hits theaters this weekend. The movie is expected to generate modest box office domestically but fare well overseas.

At Friday's close, DreamWorks Animation was up nearly 5% to $27.75.