DreamWorks Animation (DWA) Rating Upgraded To Overweight

Thomas Weisel (NASDAQ: TWPG) increased the rating on DreamWorks Animation (NASDAQ: DWA) from “market weight” to “overweight”. Target price has been raised from $40 to $47.

Target price has been increased after factoring the expected international success of Shrek 4 in the 2010 estimates for DreamWorks. Avatar is a case in point, as it has internationally grossed 2.5 times its domestic earnings. Ice Age 3 grossed 3.5 times its domestic performance, internationally. Up’s international earnings were 1.5 times its domestic earnings.

Hence, Thomas Weisel analyst Benjamin Mogil is raising the international/domestic ratio for the 2010 DWA slate from 1.12x to 1.34x.