J.P. Morgan Lowes DWA Target To $27 From $33.50

J.P. Morgan is lowering its PT on DreamWorks Animation SKG, Inc. (NASDAQ: DWA) to $27 from $33.50.

“We are adjusting our model to reflect Megamind's actual worldwide box office trajectory as well as lower expectations for Shrek Forever After DVD sales,” J.P. Morgan writes. “As a result we are reducing our Q4 '10 EPS estimate to 79c from $1.00. Revised earnings estimates also drive a $6.50 reduction to our price target, which now stands at $27.00.

“We maintain our Neutral rating but note that in our view room for downside surprise remains due to uncertainty around Shrek and Dragon DVD sales in Q4 '10.”

DreamWorks Animation SKG closed Thursday at $29.45.