Wunderlich analyst considers DWA stock

'Dragon'-induced sell-off may be entry for bullish buyers

NEW YORK -- While some on Wall Street have turned more bearish on shares of DreamWorks Animation after the weaker-than-expected opening of "How To Train Your Dragon," Wunderlich Securities analyst Matthew Harrigan on Monday suggested investors who believe in the stock could get into it more cheaply these days.

After a boxoffice haul of $29.2 million for its second weekend, the film's cume stands at "a solid but not monstrous $92.3 million," declining "a very moderate 33%" from its opening weekend, Harrigan highlighted.

"The moderate 33% decline suggests it should continue to command good legs and could approach $175 million" in U.S. boxoffice, he concluded. "The 'Dragon'-induced sell-off may suggest an entry point for those bullish on DreamWorks stock."

Barclays Capital analyst Anthony DiClemente on Monday estimated the film's boxoffice gross could reach roughly $150 million.

DWA's stock lost 11.3% from its $42.81 close on March 26, the opening day for "Dragon," until the end of last week's trading session. On Monday, the stock edged up 1% to $38.38.

Wall Street has been disappointed with the early boxoffice trends for "Dragon." On Thursday, Morgan Stanley analyst Benjamin Swinburne downgraded DWA shares from "equal-weight" to "underweight" with a $35 price target.

"Critical and exit reviews for 'Dragon' are very strong, but it did not have the voice talent or quite the marketing effort that 2009's 'Monsters vs. Aliens' had," offered Harrigan.