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DreamWorks Shares Surge to High

Shares of DreamWorks Animation SKG Inc. hit a 15-month high on Friday in response to an analyst upgrade. The Glendale film and TV studio has lost money on four of its last seven films, and reported widening losses in the most recent quarter, forcing it to sell and lease back its headquarters building. However, the success of “Home,” a March release with an estimated box office of $171 million, has given the company and its investors new hope. Benjamin Mogil, an analyst at Stifel Financial Corp. in New York, raised his rating on Friday from “hold” to “buy” based on the studio’s new strategy of targeting younger children. “The 2012-2014 film challenges were tied to films which skewed older right as the box office began to see changes whereby animation demand was increasingly skewing younger,” he wrote in a note to investors. “The company’s slate changes are more realistic/in-tune with the evolution in changes in the box office market.” DreamWorks’ upcoming film schedule includes “Kung Fu Panda 3,” “Trolls” and “Boss Baby” a story about a briefcase-carrying infant based on a children’s book. Mogil also said DreamWorks’ television revenue, which is not tied to new releases, should continue to grow at least through 2017. Shares closed up 86 cents, or 3.1 percent, to $28.32 on the Nasdaq.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.
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