Topeka Downgrades DreamWorks Animation To Sell For The Second Time This Year

David Miller of Topeka Capital Markets downgraded shares of DreamWorks Animation (NYSE: DWA) to Sell from Hold with a price target lowered to $17 from a previous $23.

Miller previously downgraded shares from Hold to Sell on April 25 before upgrading shares back to Hold in May.

According to Miller, a $17 price target is the equivalent of the company's tangible book value, which is justified as the analyst expects a partial-write down on Penguins of Madagascar.

Miller noted that "Penguins" sophomore weekend box office revenue dropped a “precipitous” 56.4 percent compared to last weekend's $25.4 million sales. As such, the analyst sees a global theatrical ultimate of $370 million being “unrealistic.”

Miller believes that Penguins may see only $230 million in global box office sales, and, in tandem, expects a $37.0 million partial write-down on the film.