Financial ratings wrap-up: Sprint Nextel, MetroPCS, Nortel 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
–R.W. Baird lowered its price target on MetroPCS to $25 from $30 on mixed fourth-quarter results. The firm also lowered its 2008 revenue estimates on the carrier to $2.8 billion from $2.9 billion. Morgan Stanley lowered its price target on the company to $29 from $31.
–Standard & Poor’s Ratings Services placed its BBB- corporate credit rating for Sprint Nextel on CreditWatch with negative implications following the company’s announcement that its financial results are being impacted by postpaid subscriber losses. “The erosion in Sprint Nextel’s subscriber base and the resultant decline in EBITDA are substantially higher than we anticipated and the company’s business profile is probably no longer supportive of an investment-grade rating,” said Standard & Poor’s credit analyst Allyn Arden. RBC Capital Markets lowered its price target on the company to $10 from $12. Credit Suisse First Boston lowered its price target on Sprint Nextel to $11 from $13. R.W. Baird reduced its EPS estimates on the company to a loss of 18 cents rather than a profit of 48 cents per share for 2008.
–R.W. Baird lowered its estimates on Telephone & Data Systems on expectations of slightly weaker wireless subscriber growth. The firm now expects TDS to report EPS of $2.52 rather than $2.79 for 2008. TDS is the parent company of U.S. Cellular.
–Morgan Stanley lowered its price target on Embarq to $44 from $55 to reflect the de-rating of the company’s stock.
–Credit Suisse First Boston lowered its EPS estimates on Leap Wireless to breakeven from 9 cents for 2008 after the company reported solid fourth-quarter results. R.W. Baird adjusted its 2008 EPS estimate on the company to a loss of 20 cents rather than a loss of 28 cents. Morgan Stanley raised its 2008 revenue estimates on Leap to $1.669 billion from $1.636 billion for 2008.
Handset and infrastructure vendors
–R.W. Baird lowered its estimates on Nortel Networks after the company reported disappointing fourth-quarter results. New estimates are EPS of 66 cents on revenues of $11.2 billion from $1.65 on $11.4 billion for 2008. Credit Suisse First Boston lowered its price target on Nortel to $8 from $18 and reduced its estimates to 37 cents on $11.28 billion from $1.08 on $11.48 billion for 2008.