Financial ratings wrap-up: Verizon, Tellabs, ADC 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 raised its issue rating on Qwest Corp.‘s senior unsecured debt to BBB- from BB+.
–Lehman Bros. raised its price target on Verizon Communications to $46 from $40 and bumped its EPS estimate on the company to $2.74 from $2.59 based on expectations for continued wireless ARPU improvements.
Handset and infrastructure vendors
–Credit Suisse First Boston started coverage on Nortel Networks with an underperform rating and a $19 12-month price target.
–CIBC World Markets initiated coverage on Chinese handset maker Qiao Xing Mobile Communication with a sector outperform rating and a $12 price target.
Other
–RW Baird lowered its estimates on Comverse Technology Inc. after the company reported disappointing first-quarter results. The firm’s new 2007 EPS estimate is 13 cents, down from 45 cents.
–RW Baird raised its estimates on ADC Telecommunications Inc. after the company reported better-than-expected results for the second quarter but lowered its second-half guidance. For fiscal 2007, it now expects revenue of $1.29 billion and 91 cents per share rather than $1.28 billion and 90 cents per share. Fiscal 2008 estimates change to $1.32 billion and $1.05 per share from $1.31 billion and $1.05 per share. Credit Suisse First Boston also adjusted its estimates on ADC to $1.29 billion and 92 cents per share from $1.29 billion and 84 cents per share for 2007 and to $1.33 billion and 96 cents per share from $1.32 billion and 94 cents per share for 2008.
–Goldman Sachs downgraded Tellabs to sell from neutral, saying it believes the company’s shares fully discount the sales and margin improvements it believes management will deliver.
–CIBC World Markets raised its estimates on Novatel Wireless Inc. to reflect continued strong demand in North America for EV-DO cards and USB modems at Verizon Wireless and Sprint Nextel Corp. The firm’s 2007 sales and EPS estimates on Novatel increase to $410 million and $1.26 from $394 million and $1.09, and its 2008 estimates increase to $470 million and $1.38 from $420 million and $1.17.