Financial ratings wrap-up: Leap, Nokia, Texas Instruments and more
September 10 2008 - 6:00 am ET | Kristen Beckman | RCR Wireless
The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
--Credit Suisse First Boston lowered its rating on Vodafone Group to neutral from outperform, saying it believes the company is likely to slightly miss its new revenue guidance.
--Deutsche Bank raised its price target on Sprint Nextel to $9 from $8 based on the company’s second-quarter report.
--J.P. Morgan started coverage on Leap Wireless with an overweight rating and a price target of $56. The firm also initiated coverage on MetroPCS with an overweight rating and a $22 price target.
Handset and infrastructure vendors
--Oppenheimer cut its price target on Nokia to $26 from $30 after the company lowered its third-quarter market share expectations to a slight loss. Credit Suisse First Boston cut its price target and estimates on Nokia on long-term concerns.
--Oppenheimer raised its rating on Alvarion to outperform from perform and set a $9 price target on the company. The firm noted the company’s shares are attractive at current levels and it sees potential for upside for the company.
--RBC Capital Markets lowered its price target on Alcatel-Lucent to $6 from $7, citing a downturn in demand for traditional telecom gear. The firm also decreased its estimates on the company to a loss of 2 cents rather than a loss of a penny for 2008 and profit of 39 cents from 43 cents for 2009.
--RBC Capital Markets lowered its price target on Nortel Networks to $6 from $8 on overall market concerns.
Other
--R.W. Baird trimmed its estimates on Texas Instruments on below-seasonal demand trends in mobile phones and expectations for further market share losses in 2009. The firm’s 2008 EPS estimates drop to $1.87 from $1.89 and its 2009 EPS estimates drop to $1.83 from $1.86.
--Credit Suisse First Boston dropped its price target on ADC Telecommunications to $11 from $13 after the company reported third-quarter results.
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