The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
–RBC Capital Markets lowered its price target on Embarq to $54 from $60 on lower out-year cash flows. The firm, however, raised its 2008 revenue estimate on the company to $2.5 billion from $2.47 billion. Lehman Brothers raised its 2008 estimates on Embarq to $4.43 from $4.28, but lowered its 2009 estimates on the company to $4.81 from $4.86. Credit Suisse First Boston raised its 2008 EPS estimates on the company to $4.52 from $4.58 and established a 2009 EPS estimate of $4.48.
–Standard & Poor’s Ratings Services assigned its A rating to Verizon Communications Inc.‘s $4 billion of aggregate senior notes. The outlook is stable.
–Credit Suisse First Boston lowered its price target on Qwest Communications to $7 from $8 after the company reported results that were slightly below expectations. CSFB also reduced its estimates on Qwest to 40 cents from 66 cents for 2008.
Handset and infrastructure vendors
–Goldman Sachs lowered its price target on Aruba Networks to $8 from $11 after the company pre-announced negative second-quarter results. Lehman Brothers lowered its price target on the company to $10 from $22 and cut its estimates to 5 cents from 23 cents for 2008 and to 25 cents from 53 cents for 2009. RBC Capital Markets lowered its price target on Aruba to $39 from $41.
–R.W. Baird raised its estimates on Alcatel-Lucent to 46 cents from 44 cents for 2008 on better-than-expected revenue results for the fourth quarter. The firm noted the company’s outlook is more cautious.
Other
–CIBC World Markets raised its price target on Qualcomm to $52 from $46 on improving sentiment surrounding legal proceedings with Nokia and Broadcom, share gains with the company’s 3G chipsets at key OEMs, and likelihood of EPS upside based on the pace of 3G adoption.
–Lehman Brothers adjusted its estimates on Crown Castle. New estimates are a loss of 87 cents rather than a loss of 68 cents for 2008 and a loss of 23 cents rather than a loss of 26 cents for 2009.
–Credit Suisse First Boston lowered its price target on RealNetworks to $7 from $8 after the company reported in-line fourth-quarter financial results. The firm also lowered its 2008 estimates on the company to a loss of 7 cents on revenues of $624 million from profit of 9 cents on revenues of $652 million to reflect guidance.
–RBC Capital Markets lowered its price target on InfoSpace Inc. to $13 from $22 to reflect a recent shareholder dividend payment of $300 million.
–R.W. Baird lowered its estimates on NeuStar Inc. after the company issued weaker-than-expected core transaction guidance. The firm’s new EPS estimate for 2008 is $1.50 rather than $1.63.
