UPDATE: Piper Jaffray Upgrades DreamWorks Animation to Overweight

Piper Jaffray raises its rating on DreamWorks Animation

to Overweight from Neutral and raises its price target $3 to $23 as a contrarian call that assumes bad news is baked in and that there is better news coming. Piper Jaffray says, "We think the time is right to start building positions in unloved DWA. Concerns about a weak DVD business are likely already in the stock, while worries about an uncertain distribution deal and higher production costs are likely overdone. While details for a new distribution deal are scarce, our analysis suggests the most likely outcome will be accretive and provide more flexibility for the company. ... While we could be early here, we see high short interest, negative investor sentiment and moderating risk as catalysts to get the shares moving." DWA closed at $18.30 a share on Friday.