William Blair & Company initiated research coverage of DreamWorks
Animation SKG, Inc. (NYSE: DWA) ($32.05) with a Market Perform rating
and an Aggressive Growth company profile and released its third annual
report on the future of the digital media industry. DreamWorks is
establishing itself as a widely recognized brand in family entertainment
with its computer-animated feature films, which have had success at the
box office. Shrek is DreamWorks’
marquee franchise, collectively grossing more than $2.2 billion in
worldwide box office sales.
Analyst Ralph Schackart estimated that DreamWorks would earn $1.68 per
share in 2008, $1.61 per share in 2009, and $1.93 per share in 2010.
“We believe DreamWorks is the leading way to
play the attractive CGI (computer-generated imagery) animation space,”
Schackart said. “The company is transitioning
from a ‘Shrek-only’
story to building out its library with additional hits, such as Madagascar,
Over the Hedge, Bee Movie, and Kung Fu Panda. In our view,
the success of DreamWorks’ stock over the long
term will be determined by achieving a higher batting average of
successful movie releases that will drive significant DVD sales and, in
turn, build a larger library. Moreover, cash deployment will aid in
value creation, in our view.”
William Blair’s third annual edition of The
Future in Digital Media spotlights new themes in the industry such
as the Blu-ray cycle, download-and-burn DVDs, smart phones, 3-D movies
and digital cinemas, HD radio, digital archiving, and the digital home.
The report also provides a numerical measurement system of IP developed
by Ocean Tomo’s PatentRatings (www.patentratings.com)
as a guide to investors to help benchmark and frame IP leaders. In
addition, the report offers a macroeconomic summary of the consumer
electronics industry, overviews of each public company in our digital
media coverage universe, and profiles of nearly 500 emerging digital
media companies.
About PatentRatings
PatentRatings, a division of Ocean Tomo, offers the first proven,
market-validated data and software platform for objectively assessing
patent quality, relative valuation, and competitive trends for patents,
companies, and technology sectors. With its patented technology,
PatentRatings publishes commercial ratings on all U.S. issued patents,
using a set of proprietary algorithms developed and refined over the
years. For more information on the PatentRatings System, visit www.patentratings.com
or contact@patentratings.com.
About William Blair & Company, LLC
William Blair & Company, L.L.C. is a Chicago-based investment firm
offering investment banking, asset management, equity research,
institutional and private brokerage, and private capital to individual,
institutional, and issuing clients. Since 1935, we have been committed
to helping clients achieve their financial objectives. As an
independent, employee-owned firm, our philosophy is to serve our
clients' interests first and foremost. We place a high value on the
enduring nature of our client relationships, the quality of our products
and services, and the continuity and integrity of our people. William
Blair & Company’s offices include
Chicago, Boston, London, New York, San Francisco, Shanghai, Tokyo, and
Zurich. For more information, please visit www.williamblair.com.
William Blair & Company, L.L.C. intends to seek or expects to receive
compensation for investment banking services from DreamWorks Animation
SKG, Inc. in the next 3 months.
William Blair & Company, L.L.C. is a market maker in the security of
DreamWorks Animation SKG, Inc. and may have a long or short position.
For important disclosures and information regarding the firm’s
rating system, valuation methods and potential conflicts of interest,
please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1409&depID=4
Additional information is available upon request.
William Blair & Company, L.L.C.
Tony Zimmer
312-364-8611
tzimmer@williamblair.com
