UPDATE: Sterne Agee Initiates Coverage on DreamWorks Animation SKG with Underperform Rating, $18 PT on Expected EPS Decline

In a report published Thursday, Sterne Agee analyst Vasily Karasyov initiated coverage on

with an Underperform rating and $18.00 price target. In the report, Sterne Agee noted, “We expect EPS to decline 35% Y/Y in 2014 and the share price to reach $18, 21% downside from the current level. We are therefore initiating coverage of DWA with an Underperform rating. We think the consensus estimates imply future film box office results which are likely to prove too optimistic.” DreamWorks Animation SKG closed on Thursday at $22.62.