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NEW YORK (TheStreet) -- Dreamworks Animation (DWA) stock was initiated with an "overweight" rating and $31 price target at Keybanc on Tuesday morning.

The Glendale, CA-based company creates family entertainment, including animated feature films and television series.

Keybanc recommends owning the stock.

"The company is transforming itself into a major supplier of content to SVOD and emerging platforms, which, combined with recent theatrical restructuring, is likely to drive growth, expand margins and limit potential downside," the firm said in an analyst note.

DreamWorks is in a strong position to capitalize on the global demand from emerging platforms for original programming, Keybanc noted.

The firm sees a path to $400 million in TV production revenue by 2018.

Shares of Dreamworks closed up by 0.61% to $24.73 on Monday.

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TheStreet Recommends

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.

As a counter to these strengths, the team finds that the company's return on equity has been disappointing.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DWA

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