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Following is a roundup of ratings and financial information relating to wireless companies announced this week by banking and investment firms and financial analysts.
- Standard & Poor’s Ratings Services withdrew its ratings on Crown Castle International Corp. including its B corporate credit rating after the company paid off most of its existing debt, including its publicly rated unsecured notes totaling $1.4 billion.
- Standard & Poor’s Ratings Services raised its corporate credit rating on Juniper Networks Inc. to BB from B+ with a stable outlook. S&P noted Juniper’s broadening business base and expanding scale, as well as recently improved operating profitability and cash flows.
- IRG Research eliminated its holding company discount and raised its price target on Liberty Global Inc. from $49 to $53.
- Avondale Partners reiterated its market outperform rating on Logitech International on news the company introduced wireless Bluetooth headphones for iPods.
- IRG Research initiated coverage on Jamdat Mobile with a buy rating based on the company’s high-growth, high-margin, scalable business model.
- Pacific Growth Equities reiterated its overweight rating on Airspan Networks Inc., saying it expects strong guidance for the September quarter and a possible original equipment manufacturer contract with Ericsson. Pacific Growth also said it expects robust WiMAX development next year in the United States and worldwide, and WiMAX certification should spur WiMAX-related capital spending within the carrier community.
- UBS upgraded Nokia from neutral to buy, citing improvements in the company’s customer management processes and more simplified approaches to market segmentation and product development, which should reduce future execution risk.
- First Albany Capital downgraded Hewlett-Packard Co. from buy to neutral, saying the company is approaching its price target of $25 and recently has significantly outperformed. HP’s stock is up 22 percent in the past three months. First Albany also noted near-term instability with a potential reorganization and re-alignment initiative at the company, which could include layoffs up to 10 percent of the company’s work force.
- Morgan Stanley resumed coverage of Global Signal Inc. with an overweight rating, saying the company should continue to deliver rapid top-line growth through small-scale acquisitions. Morgan Stanley also noted potential for additional dividend increases.
- Standard & Poor’s revised its outlook on AMI Semiconductor Inc. to stable from positive following news the company agreed to buy Flextronics Inc.’s semiconductor division. S&P said the revision reflects the likelihood that leverage will increase following the acquisition. The company’s corporate credit and senior secured ratings are affirmed at BB-.
- Pacific Growth Equities lowered its estimates on Novatel Wireless, saying it expects the company will meet June quarter estimates but believes it will have difficulty offering guidance as aggressive as current levels for the next quarter and full year.
- UBS raised its revenue estimates for Ericsson, from $18.9 billion to $19.2 billion for 2005, based on stronger exchange rates between U.S. and Swedish currency. Revenue forecasts for 2006 are now $21.1 billion, up from $20.5 billion. UBS also raised its earnings per share estimates on the vendor from $1.81 to $1.88 this year, and from $2.02 to $2.15 next year. Ericsson’s 12-month price target was raised to $39.15. UBS maintained its buy rating on the company.
- First Albany Capital raised its rating on LCC International Inc. from neutral to buy on news the company has implemented a cost-savings plan. First Albany noted the company’s pipeline of work remains solid and it believes wireless operators will demand additional work throughout this year.
- Merrill Lynch cut Deutsche Telekom to neutral from buy, saying it has cut its long-run margin assumptions in the U.K. and German wireless markets. DT owns U.S. wireless carrier T-Mobile USA.
