UPDATE: Goldman Sachs Reiterates Sell Rating, Lowers PT on DreamWorks Animation SKG on 4Q12 EBITDA Loss

In a report published Wednesday, Goldman Sachs reiterated its Sell rating on DreamWorks Animation SKG (NASDAQ: DWA), but slightly lowered its price target from $17.00 to $16.00.Goldman Sachs noted, “4Q12 EBITDA loss of $126 mn was significantly below our ($12) mn estimate and consensus of $12 mn, due to a larger film write down for ‘Guardians' and 1X charges for other films. In response, DWA is reducing headcount that will likely lower future film production costs by $15-20 mn starting in 4Q14; P&A costs may also come down. We believe film profitability hinges on hitting all four quadrants, which we view as challenging. We reduce 2013-2014E EBITDA by 9% (average) on higher production and SG&A costs.”DreamWorks Animation SKG closed on Tuesday at $16.61.