TW, DWA shares fall on downgrade
Analysts views cause stock drops for companiesA couple of analyst downgrades Wednesday hurt shares of Time Warner and DreamWorks Animation.
Michael Nathanson of Stanford C. Bernstein cut his view on TW from "outperform" to "market perform," and the stock dropped 2.2% to $16.33. Curiously, though, he upped his price target 50 cents to $18.50.
Stifel Nicolaus analyst Drew Crum sliced his rating on DWA from "buy" to "hold," and the stock sunk 2% to $31.18.
Nathanson said that even if TW "does the right thing" by buying back $9.25 billion of stock after splitting off Time Warner Cable and selling AOL's dial-up business, "the remaining stub does not look that attractively valued relative to peers."
Crum's issues with DWA include that the stock already is near his $32 price target. He also expects "volatility" around the Nov. 8 theatrical release of "Madagascar: Escape 2 Africa," which he expects will bring in $200 million at the domestic boxoffice.