UPDATE: Goldman Sachs Downgrades DreamWorks Animation SKG to Sell, Lowers PT to $15

Goldman Sachs lowers its rating on DreamWorks Animation SKG DWA to Sell from Neutral and lowers its price target to $15 from $20 as waning DVD demand impacts estimates. Goldman Sachs notes, "We downgrade DWA to Sell from Neutral, with 17% downside potential to our new price target, due to disappointing “Kung Fu Panda 2” home video sales and “Puss in Boots” US box office. Preliminary data on “KFP 2” DVD sales suggest sales of 4.5 mn units globally in 4Q2011, 30% below our prior forecast. We see this as part of a secular shift and reduce home video estimates for all future films. On average, we reduce 2012/13 EPS estimates 19% and we are now 10% below consensus. DWA currently trades at 16X our 2012E EPS, a 10% premium to trailing 2-year average." DWA closed at $17.48 per share on Friday.