Weekly wireless ratings wrap-up

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.

Click here for wireless ratings from past weeks from RCR Wireless News.

• Carrier

• Standard & Poor’s Ratings Services placed UbiquiTel Inc. on CreditWatch with positive implications after Sprint Nextel Corp. announced plans to purchase the company. S&P affirmed Sprint Nextel’s ratings on the news.

  Handset and infrastructure vendors

   

• CIBC World Markets raised its estimates on Nokia following the company’s first-quarter report. For 2006, it now expects EPS of $1.37, up from $1.12. For the second quarter, CIBC predicts EPS of 31 cents rather than 23 cents. RBC Capital Markets also raised its estimates on Nokia to $1.36 from $1.13 for 2006 and to $1.42 from $1.22 for 2007. Harris Nesbitt raised its estimates on Nokia to $1.29 from $1.21 for 2006 and to $1.42 from $1.40 for 2007.

   

• Piper Jaffray initiated coverage on Palm Inc. with a market perform rating and a $25 price target.

   

• S&P Equity Research Services downgraded its opinion on Motorola Inc. to hold from strong buy, saying the company’s EPS fell just short of its estimates and expressing disappointment in the company’s telecom network and connected home solutions units. S&P also lowered its price target on the company to $25 from $28. RBC Capital Markets raised its estimates on Motorola, noting strong handset unit growth and revenues ahead of guidance. For 2006, the firm expects EPS of $1.29, up from $1.24. For 2007, it increased its EPS estimate to $1.42 from $1.40. Harris Nesbitt also raised its estimates on the company, to $1.32 from $1.30 for 2006 and to $1.44 from $1.42 for 2007. Prudential Equity Group slightly lowered its 2006 EPS estimate on the company to $1.21 from $1.22. Piper Jaffray also lowered estimates on Motorola to $1.30 from $1.32 for 2006 and to $1.45 from $1.48, noting weak network margins.

   

• Piper Jaffray raised its estimates on Qualcomm Inc. after its channel checks indicated solid trends and an improving EV-DO mix, strong W-CDMA and CDMA subscriber results in March in Japan, strong CDMA growth in India and re-accelerating handset sales in South Korea. Piper Jaffray raised its 2006 W-CDMA unit forecast from 92 million to 95 million and its CDMA unit forecast from 176 million to 181 million. As a result, it also raised its fiscal 2006 estimates from $1.55 pro forma earnings per share on revenue of $7.1 billion to $1.56 and $7.2 billion. For fiscal 2007, it changed its estimates from $1.84 and $8.4 billion to $1.89 and $8.6 billion. Harris Nesbitt raised its 2006 outlook on the company to pro forma EPS of $1.58 from $1.55 and its 2007 estimate to $1.92 from $1.90. Credit Suisse First Boston raised its 2006 and 2007 estimates on Qualcomm to $1.57 from $1.55 and to $1.78 from $1.77 respectively.

   

  Other

   

• Harris Nesbitt raised its estimates on Freescale Semiconductor after the company reported strong second-quarter results. For 2006, the firm raised its estimates to $2.10 from $1.88 and for 2007 it raised estimates to $2.14 from $2.10. Credit Suisse First Boston raised its price target on Freescale to $35 from $32 and raised estimates to revenue of $6.24 billion for 2006, rather than $6.20 billion. It upped its EPS estimates on the company for 2006 to $1.83 from $1.64. Piper Jaffray raised its price target on the company to $35 from $32 and increased its 2006 revenue and EPS estimates to $6.257 billion and $2.11 from $6.129 billion and $1.73. For 2007, it increased estimates to $6.602 billion and $2.22 from $6.248 billion and $1.75.

   

• R.W. Baird initiated coverage on NeuStar Inc. with an outperform rating and $39 price target. Baird said the company is positioned to capitalize on a variety of telecom trends.

   

• R.W. Baird downgraded Adtran Inc. to neutral from outperform and lowered its price target to $28 on lower first-quarter results and lower Q2 guidance.

   

• Prudential Equity Group raised its price target on Amdocs Ltd. to $41 from $37 on news the company plans to buy Qpass.

   

• Harris Nesbitt raised its estimates on Texas Instruments Inc. for 2006 to EPS of $1.80 from $1.67 and for 2007 to $2.05 from $1.95. The firm also raised its price target on the company to $41 from $35. TI reported generally in-line results and offered positive guidance. RBC Capital Markets also raised its estimates on the company for 2006 to $1.59 from $1.49. Credit Suisse First Boston raised its estimates on TI to $1.60 on $14.43 billion in revenues for 2006, from $1.47 on revenues of $13.77 billion. For 2007, it bumped its estimates to $1.91 on revenues of $16.42 billion, from $1.73 on $15.64 billion. Prudential Equity Group raised its estimates on TI to $1.66 from $1.61 for 2006, and to $2.17 from $2.13 for 2007. It also lifted its price target on the company from $38 to $40.