UPDATE: Sterne Agee Raises PT on DreamWorks Animation SKG Following New TV Revenue

In a report published Wednesday, Sterne Agee analyst Vasily Karasyov reiterated an Underperform rating on DreamWorks Animation SKG (NASDAQ: DWA), and raised the price target from $18.00 to $21.50.

In the report, Sterne Agee noted, “DWA provided guidance for revenue and earnings contribution from recently announced deals with Netflix (NFLX, $228.83, Neutral--Bhatia), SUPER RTL and potential future agreements. After incorporating it, we are raising our estimates and target price (see below). We continue to believe, however, that the consensus before today was too high; we expect to remain below the Street on FY14 and FY15; we see 12% downside to our revised target price and therefore rate the shares Underperform.”

DreamWorks Animation SKG closed on Tuesday at $24.31.