Financial ratings wrap-up: AT&T, Nokia, Motorola, 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
–Standard & Poor’s Ratings Services revised its outlook on AT&T Inc. to stable from negative and affirmed its ratings.
–Standard & Poor’s Ratings Services revised its outlook on Verizon Communications to stable from negative and affirmed its ratings.
Handset and infrastructure vendors
–RBC Capital Markets raised its estimates on Nokia Corp. based on improving margins for the mobile device division. For 2007 it expects EPS of $1.25 rather than $1.20, and for 2008 it expects EPS of $1.38 rather than $1.30.
–CIBC World Markets adjusted its estimates on L.M. Ericsson after the company reported second-quarter results that slightly missed consensus estimates. For 2007 it expects the company to report EPS of $2.57 rather than $2.53, and for 2008 it expects EPS of $2.99 rather than $2.92. Lehman Bros. raised its price target on the company to $48 from $45 and increased its estimates to $2.60 from $2.51 for 2007 and to $2.83 from $2.76 for 2008.
–Credit Suisse First Boston lowered its estimates on Motorola Inc., saying challenges in the company’s handset business are likely to persist through 2007. CSFB predicts EPS of 21 cents rather than 27 cents for 2007. It maintains its 2008 EPS estimate of 93 cents. Lehman Brothers raised its estimates on the company to 17 cents from 11 cents for 2007 and to 56 cents from 54 cents for 2008.
–Standard & Poor’s Ratings Services assigned its B corporate credit rating to Palm Inc. The outlook is stable. The action follows a planned recapitalization, including a term loan, a preferred equity investment by private equity firm Elevation Partners, and a cash dividend to common shareholders, said S&P.
Other
–Credit Suisse First Boston raised its estimates on Texas Instruments Inc. after the company reported in-line second-quarter results. CSFB noted the company’s strengths in 3G wireless, DLP and calculators offset weaknesses in catalog analog and wireless infrastructure. New estimates are EPS of $1.79 on revenue of $14.03 billion for 2007, up from $1.78 on $13.99 billion, and $2.17 on $15.57 billion from $2.14 on $15.45 billion for 2008. R.W. Baird raised its 2008 estimates on TI to $1.95 from $1.90 and raised its price target to $40 from $36. Lehman Brothers raised its price target on TI to $41 from $40 and increased its estimates to $1.76 from $1.71 for 2007 and to $2.15 from $2.05 for 2008.
–First Albany Capital raised its 2008 estimates on Atheros Communications Inc. after the company reported better-than-expected second-quarter results. The firm’s new estimates for 2008 are EPS of $1.18 on revenue of $505 million, up from EPS of $1.15 on revenues of $500 million. It also raised its price target on Atheros to $35 from $32.
–CIBC World Markets raised its price target on Brightpoint to $16 from $14, saying the company has put many recent issues behind it and the positives will outweigh a slight EPS shortfall for the second quarter. Credit Suisse First Boston initiated coverage on Brightpoint with an outperform rating and an $18 price target.
–CIBC raised its estimates on Skyworks Solutions Inc. and bumped its price target to $9.50 from $8, saying the company is delivering despite weakness at Motorola. New EPS estimates for 2007 are 47 cents rather than 45 cents and 58 cents rather than 51 cents for 2008.
–CIBC World Markets downgraded Alvarion Ltd. to sector performer from sector outperformer and removed its $10 price target on the company. The firm said Alvarion should continue to see improving fundamentals but that investors will find more attractive re-entry points before WiMAX growth reaches an inflection point next year.
–Credit Suisse First Boston lowered its estimates on Broadcom Corp. after the company reported lower-than-expected revenues for the second quarter. For 2007, CSFB expects the company to report EPS of 34 cents on revenues of $3.75 billion, down from EPS of 42 cents on revenues of $3.82 billion. For 2008, it expects EPS of 72 cents on $4.55 billion from 72 cents on $4.75 billion.