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The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
- Carrier
- Credit Suisse First Boston lowered its 2007 EPS estimate on Sprint Nextel Corp. to 82 cents from 86 cents after the company reported fourth-quarter results. Prudential Equity Group raised its 2007 EPS estimate on the company to 85 cents from 75 cents. RBC Capital Markets raised its 2007 EPS estimate on the carrier to 77 cents from 65 cents. Robert W. Baird raised its estimates on Sprint Nextel to 94 cents from 86 cents for 2007 but lowered its 2008 EPS estimate on the company to $1.24 from $1.48. It also raised its price target to $21 from $20.
- Credit Suisse First Boston raised its price target on Leap Wireless International to $76 from $73 on better-than-expected quarterly results. Morgan Stanley raised its price target on the company to $73 from $67.
- Robert W. Baird raised its 2007 and 2008 EPS estimates on Telephone & Data Systems on solid fourth-quarter results. New EPS estimates for 2007 are $2.31, up from $1.79 and its 2008 EPS estimate increases to $2.52 from $2.02.
- Standard & Poor’s Ratings Services placed Alltel Corp.‘s ratings on CreditWatch with negative implications after the company announced plans to explore strategic alternatives. Lehman Brothers raised its price target on Alltel to $70 from $65.
Handset and infrastructure vendors - Prudential Equity Group lowered its 2007 EPS estimate on Nokia Corp. to $1.42 from $1.46 based on expected lingering impact of price discounting.
- RBC Capital Markets upgraded Research In Motion to outperform from sector perform and raised its price target to $180 from $145 based on vigorous momentum from the company’s product cycle, lower impact of changing margin/mix to valuation and strong momentum mitigating competitive pressures. The firm also raised its 2008 EPS estimate on RIM to $5.42 from $5.
Other - First Albany Capital downgraded InterDigital Communications Corp. to buy from strong buy after the company reported better-than-expected fourth-quarter results but lighter guidance.
- Raymond James downgraded Syniverse Holdings Inc. to market perform from outperform on disappointing fourth-quarter results and a bleak outlook for 2007. Avondale Partners also downgraded Syniverse to market perform.
- CIBC World Markets raised its estimates on Novatel Wireless after the company delivered in-line quarterly results. CIBC’s new 2007 estimates on the company are EPS of 70 cents on revenues of $348.8 million from 62 cents on revenues of $344.7 million. Its 2008 estimates increase to 88 cents on $400.8 million from 87 cents on $396.1 million.
- RBC Capital Markets raised its price target on SBA Communications Corp. to $35 from $30 based on a reduction in its public-market discount on the company to 15 percent from 25 percent. It lowered its estimates on the company to a loss of 62 cents for 2007, rather than a loss of 55 cents.
- RBC Capital Markets raised its estimates on RadioShack Corp. for 2007 to EPS of 75 cents from 65 cents.
- First Albany Capital reduced its estimates on Powerwave Technologies Inc. after the company reported disappointing fourth-quarter results. For 2007, First Albany forecasts a net loss of 31 cents rather than net income of 20 cents, while its revenue estimate drops to $725.6 million from $775.4 million.
- RBC Capital Markets upgraded Comverse Technology Inc. to outperform from sector perform and raised its price target to $28 from $21. The analyst firm said Converse’s position is solid and that it expects the company to recover from accounting problems within the coming year. Comverse also received an upgrade from Robert W. Baird, which raised its rating on the company to outperform from neutral.
- Standard & Poor’s Ratings Services affirmed its BB corporate credit rating on Crown Castle and removed it from CreditWatch where it was placed with negative implications in October following its deal to acquire Global Signal Inc.. The outlook is negative.
