The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carriers
Raymond James initiated coverage on Price Communications with a Market Perform rating. The firm said the value of Price comes from its interest in the limited partnership with Verizon Wireless which accounts for nearly 95 percent of Price’s total assets. The firm estimated the value of this partnership at around $1.2 billion in August 2006, when exchanged for Verizon Communications Inc. common shares.
Merrill Lynch downgraded Sprint Nextel Corp. due to what the firm said was execution risk next year.
Vendors
UBS introduced estimates for 2007 on Lucent Technologies Inc. The firm predicts sales of $10.55 billion, or 6.4-percent year-over-year growth vs. 5-percent year-over-year growth in 2006. Further, UBS predicts gross margin of 42.5 percent and operating margin of 11.9 percent. Pro forma earnings per share adjusted for stock option expenses is expected to be 19 cents compared with 16 cents in 2006. UBS said it forecasts modest growth for Lucent driven in part by mobility strength in the United States and potentially in China. UBS rates Lucent at neutral with a $3.10 price target.
