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Following is a roundup of wireless companies that were either upgraded or downgraded by financial firms this week.
- Robert W. Baird upgraded its rating on Alamosa Holdings from neutral to outperform, saying recent weakness in the company’s share price makes it a buying opportunity at current levels, and it expects the carrier’s operating results to be strong. The company said the impact of the Sprint/Nextel merger on Alamosa is uncertain, but it believes a new affiliate agreement is likely.
- First Albany Capital upgraded Hewlett-Packard Co. from neutral to buy. The company noted the appointment of Mark Hurd as HP’s new chief executive officer, which resolved some uncertainty surrounding the company. Hurd was formerly CEO of NCR Corp.
- Prudential downgraded Lucent Technologies Inc. from overweight to neutral weight, citing its long-term view of the company and its belief that spending may slow as carriers consolidate. Prudential also noted Lucent has won some small UMTS deals following its deal with Cingular Wireless L.L.C., but another big contract win could require a well-executed deployment that will raise the vendor’s credibility.
- JP Morgan upgraded InfoSpace Inc. based in part on strong growth in the company’s ringtone initiatives. JP Morgan increased its first-quarter mobile revenue estimates for the company to $37.2 million from $36 million. Analysts said they believe significant opportunities exist to increase user penetration for mobile ringtones and gaming.
- UBS upgraded BellSouth Corp. to buy from neutral, saying the company should benefit from stable wireline margins in the first half of the year and improved Cingular results.
