Why DreamWorks Animation (DWA) Stock Is Gaining Today

NEW YORK (TheStreet) -- DreamWorks Animation (DWA) shares are up 4.4% to $23.80 after they were upgraded to "neutral" from "underweight" by analysts at Piper Jaffray  (PJC) with a price target of $22 on Monday.

The upgraded outlook comes despite the firm's lowered guidance for two of the production company's biggest movies this year, 'How To Train Your Dragon 2' and 'Penguins.'

The firm cut its forecast for both films down to $180 million from $200 million, but said, "While we are still trimming expectations for How to Train your Dragon 2 and the upcoming Penguins film, we think the worst of negative earnings revisions are behind us at this stage."

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TheStreet Ratings team rates DREAMWORKS ANIMATION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate DREAMWORKS ANIMATION INC (DWA) a HOLD. The primary factors that have impacted our 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."

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