DreamWorks Falls on Downgrade

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Shares of animated filmmaker DreamWorks Animation SKG Inc. fell on Wednesday after a Wall Street analyst downgraded shares to “hold” from “buy.”

Drew Crum at Stifel Nicolaus & Co. said shares of the Glendale company had reached his $32 target price. While he was optimistic about the company’s prospects, he did not see any events that would lead investors to significantly drive up shares.

“We believe the stock is discounting health business fundamentals, a compelling pipeline of content and strong cash flow,” said Crum in a note to clients. “We remain positive on the longer-term prospects for this franchise but prefer to adopt a more cautious stance in the interim.”

DreamWorks shares closed down 65 cents, or 2 percent to $31.18 in trading on the Nasdaq.

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