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Weekly wireless ratings wrap-up

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.

Click here for wireless ratings from past weeks from RCR Wireless News.

 

Carrier

  • Prudential Equity Group raised its price target on several carriers, including Verizon Communications to $34 from $31; AT&T to $39 from $34 and BellSouth to $52 from $45.

     

  • Robert W. Baird lifted its rating on Telephone & Data Systems to outperform from neutral based on prospects for better-than-expected wireless EBITDA. The firm also raised estimates on TDS to $2.83 from $1.87 for 2006 and to $1.97 from $1.78 for 2007.

     

  • Robert W. Baird updated its estimates on United States Cellular Corp. after the company caught up on its financial filings for the first time in almost a year. The company raised its 2006 estimates on US Cellular to $2.44 from $1.71 and its 2007 estimates to $2.12 from $2.07.

 

Handset and infrastructure vendors

  • Prudential Equity Group raised its 2006 EPS estimate on L.M. Ericsson to $2.04 from $1.98, saying it expects the company to deliver strong results in the fourth quarter. RBC Capital Markets raised its estimates on Ericsson to $2.09 from $2.02 for 2006 and to $2.36 from $2.30 for 2007.

     

  • CIBC World Markets adjusted its estimates on Nokia Corp. after the company reported third-quarter results. For 2006, it lowered its EPS estimate to $1.26 from $1.32.

     

  • BMO Capital Markets raised its estimates on Motorola Inc. after the company reported mixed third-quarter results. BMO’s new estimates for the company are EPS of 41 cents for the fourth quarter, up from 39 cents, and $1.65 for 2007, up from $1.51. Credit Suisse First Boston lowered its estimates on the company to $1.26 from $1.32 for 2006 and maintained its 2007 EPS estimate at $1.57. Prudential Equity Group lowered its estimates on Motorola to $1.25 from $1.26 for 2006, but raised its 2007 estimates to $1.45 from $1.42.

 

Other

  • Pacific Growth Equities lowered its estimates on Broadcom due to supply chain cutbacks. For the fourth quarter, the firm cut its estimates on Broadcom to $925 million and 32 cents per share from $955 million and 34 cents per share.

     

  • RW Baird upgraded Andrew Corp. to outperform from neutral and raised its price target to $13 on expectations for improving company fundamentals.

     

  • Standard & Poor’s Ratings Services placed the ratings of Crown Castle International Corp. on CreditWatch with negative implications after the company announced plans to buy Global Signal Inc. for $5.8 million. The ratings review includes the company’s BB corporate credit rating and its BBB- secured bank loan rating on Crown Castle Operating Co.

     

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