Financial ratings wrap-up: Sprint Nextel, Nortel Networks, SBA Communications and more

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
–Lehman Brothers lowered its estimates on Virgin Mobile USA to 39 cents from 46 cents for 2008 after the company reported in-line first-quarter results.
–Standard & Poor’s Ratings Services affirmed its B- corporate credit rating on iPCS and revised its outlook to stable. “The stable outlook revision reflects the resolution of a number of operational and financial issues between Sprint Nextel Corp. and iPCS, which dampened iPCS’ 2007 operating performance,” said Standard & Poor’s credit analyst Susan Madison.
–Standard & Poor’s Ratings Services lowered its corporate credit rating on Sprint Nextel to BB from BBB- and removed its ratings from CreditWatch with negative implications. The outlook is stable. “The downgrade is based on our assessment that Sprint Nextel’s business risk profile is no longer supportive of an investment-grade rating given its deteriorating operating performance and lack of visibility in the wireless business, along with increased financial leverage due largely to declining EBITDA,” said Standard & Poor’s credit analyst Allyn Arden.
–RBC Capital Markets lowered its price target on Embarq to $49 from $54 on changes in DCF valuation. Morgan Stanley raised its 2008 estimates on the company to $4.81 from $4.14 on lower expenses. Lehman Brothers raised its 2008 estimates on the company to $5.24 from $4.81. Credit Suisse First Boston raised its estimates on the company to $5.03 for 2008 and to $4.73 for 2009 but lowered its price target to $42 on worsening access line trends and a higher cost of capital.
–FBR Capital Markets raised its price target on Ntelos to $36 from $34 after the company reported solid first-quarter results that beat estimates. Lehman Brothers raised its 2008 EPS estimate on the company to 90 cents from 83 cents.
Handset and infrastructure vendors
–RBC Capital Markets raised its price target on Apple to $220 from $200 on expectations of iPhone upside.
–Lehman Brothers lowered its price target on Nortel Networks to $15.50 from $17 after the company reported first-quarter results. It also lowered its EPS estimates to 92 cents from $1.03 for 2008 and to $1.23 from $1.33 for 2009. R.W. Baird increased its 2008 estimates to 40 cents on revenues of $11 billion from 24 cents on revenues of $10.7 billion. Its 2009 estimates increase to 75 cents on revenues of $11.2 billion from 67 cents on revenues of $11.1 billion. Credit Suisse First Boston revised its estimates on Nortel to 47 cents on revenues of $11.13 billion from 37 cents on revenues of $11.28 billion for 2008 and to 69 cents on $11.28 billion from 68 cents on $11.51 billion for 2009.
–R.W. Baird raised its estimates on Alcatel-Lucent after the company reported first-quarter results. New EPS estimates for the company are 54 cents rather than 46 cents for 2008 and 74 cents rather than 68 cents for 2009.
Other
–Oppenheimer raised its estimates on Powerwave after the company reported encouraging first-quarter results. New estimates are a return of 11 cents rather than a loss of 4 cents for 2008 and profit of 23 cents rather than 18 cents for 2009. RW Baird raised its estimates on the company to 14 cents from 3 cents for 2008 and to 30 cents from 20 cents for 2009.
–RBC Capital Markets raised its price target on American Tower to $50 from $48 and adjusted its estimates on the company following solid first-quarter results.
–Avondale Partners lowered its price target on Novatel Wireless to $10 from $11 on disappointing first-quarter results. The firm also cut its 2008 EPS estimate on the company to 84 cents from $1.12 on reduced revenue estimates that are down to $401 million from $449 million. 2009 EPS estimates drop to 93 cents from $1.28.
–Avondale Partners raised its revenue estimates on Sierra Wireless to $613.4 million from $593.4 million for 2008 after the company reported solid first-quarter results. The firm also increased its 2009 EPS estimate on the company to $1.92 on $731.5 million in revenues from $1.91 on $729 million.
–Lehman Brothers adjusted its EPS estimate on SBA Communications to a loss of 52 cents rather than a loss of 46 cents for 2008 after the company reported strong first-quarter results. Credit Suisse First Boston decreased its 2008 EPS estimate on the company to a loss of 42 cents on a higher depreciation forecast. It also increased its price target on the company to $33 on slightly better than expected growth.
–Lehman Brothers adjusted its estimates on Crown Castle to a loss of 25 cents rather than a loss of 23 cents for 2008 after the company reported solid first-quarter results.