UPDATE: Bank of America Downgrades DreamWorks Animation SKG on Anticipated Difficult 1Q14

In a report published Monday, Bank of America analyst Jessica Reif Cohen downgraded the rating on DreamWorks Animation SKG (NASDAQ: DWA) from Neutral to Underperform, and lowered the price target from $33.50 to $22.00.

In the report, Bank of America noted, “We anticipate a difficult 1Q14 for DWA, as in period revenue events will likely be more than offset by Mr. Peabody and Sherman underperformance and potential write-down activity. Key 1Q drivers incl.: (1) sluggish Mr. Peabody and Sherman worldwide box office (WWBO) due to particularly disappointing int'l results (DBO of $95mn vs. $132mn est. and IBO of $123mn vs. $274mn est.), (2) domestic Pay TV for The Croods (est. $30mn), (3) domestic Pay TV for Turbo (est. $28mn), (4) domestic and int'l broadcast TV revenue for Puss in Boots, (5) ongoing home ent. sales for The Croods (1.8mn units shipped, or $28mn in est. rev.), and (6) ongoing home ent. sales for Turbo (1.2mn units shipped, or $18mn in est. rev.).”

DreamWorks Animation SKG closed on Friday at $26.86.