DreamWorks' Stock Rallies After Analyst Upgrade

DreamWorks Animation SKG's stock climbed 3.1% in premarket trade Wednesday, after Morgan Stanley upgraded it to overweight from equal weight. Analyst Ryan Fiftal also raised his stock price target to $27 from $22, saying the opportunities the movie studio has with its moves toward licensing its intellectual property and cutting costs appear under appreciated by investors. "The 'dream' of moving from a box-office play to a broader, more stable, and more valuable [intellectual property] monetization business should begin to play out in '15, and [DreamWorks'] cost-structure review should materially reduce film risk," Fiftal wrote in a note to clients. The stock has lost 35% year to date through Tuesday, compared with a 12% gain in the S&P 500.