Shares in DreamWorks Animation SKG Inc. closed up nearly 7 percent Wednesday after the company was upgraded by Pali Research.

The company's next film, called "Kung Fu Panda," should have "far greater franchise potential" than previous animated films, analyst Rich Greenfield said in a research report.

Greenfield said that the movie, which features the voice of Jack Black, will bring about $563 million in worldwide sales and will sell about 28 million DVDs.

"2008 could be the year in which DreamWorks goes from a one-trick (Shrek) pony, to a studio with multiple franchises," Greenfield said.

Shares in the Glendale-based studio closed up 6.5 percent to $25.16.

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