UPDATE: Ascendiant Downgrades Dreamworks Animation

In a report released Monday, Ascendiant analyst Marla Backer downgrades Dreamworks Animation DWA from Buy to Hold.

Analysts at Ascendiant were disappointed with the performance of How To Train Your Dragon 2, as it came below consensus expectations in box office by grossing only $161 million domestically and $199 million worldwide compared to the first How To Train Your Dragon, which grossed $218 million domestically and $277 million worldwide.

Ascendiant revised its Q2 to Q4 2014 due to the films underperformance, with 2Q14 revenue projections from $245 million to $155 million and 4Q14 revenue estimate from $265 million to $200 million.

Backer credits recent underperformance in CG animated titles such as Mr. Peabody, Turbo and How To Train Your Dragon 2 for investors skepticism on Dreamworks Animation.