LOS ANGELES (Reuters) - Shares of DreamWorks Animation SKG Inc dived as much as 13.7 percent on Monday after a tepid opening weekend for “Shrek Forever After” and at least one analyst cut his view on the stock.
The film, the fourth in the successful animated “Shrek” franchise about a green ogre and his talking donkey, earned $71.3 million in its first three days of release. That fell far short of some analysts’ forecasts for more than $100 million.
“The market is selling because it’s convinced the franchise is dead and the enterprise value of DreamWorks is lower because of that,” said Michael Pachter, a Wedbush Securities research analyst who rates the stock “neutral.”
Thomas Weisel cut its price target on DreamWorks’ stock to $34 from $38 after the weak opening.
Of the previous “Shrek” films, “Shrek the Third” opened to $121.6 million in 2007, “Shrek 2” earned $108 million during its first weekend in 2004, and “Shrek” kicked off the series with $42 million in 2001.
DreamWorks shares fell as low as $30.09, before trading down 9.32 percent at $31.62 on Nasdaq at mid-afternoon.
Reporting by Dana Ford; Editing by Richard Chang