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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
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- Standard & Poor’s Ratings Services assigned a B rating and 1 recovery rating to Dobson Cellular Systems Inc.’s proposed $250 million offering of 8.375-percent first-priority senior secured notes due 2011.
- Credit Suisse First Boston raised its price target on Leap Wireless International after the company reported a solid first quarter. Its price target moves from $55 to $59. Morgan Stanley increased its price target on the company to $55 from $54. Standard & Poor’s Ratings Services assigned a B bank loan rating and 1 recovery rating on Cricket Communications Inc.’s proposed $1.1 billion senior secured bank loan. S&P also affirmed its B- corporate credit rating and stable outlook on Cricket’s parent company, Leap.
- As part of its launch of coverage of the telecommunications services sector, Credit Suisse First Boston initiated coverage on AT&T Corp. with an outperform rating and a $31 price target; Verizon Communications with a neutral rating and a $37 price target; Sprint Nextel Corp. with an outperform rating and a $30 price target; BellSouth Corp. with an outperform rating and a $41 price target; Alltel Corp. with a neutral rating and a $66 price target; Qwest Communications with an underperform rating and a $6 price target; and Leap Wireless International Inc. with an outperform rating and a $55 price target. CSFB assigned an overweight rating to the overall telecom services sector.
International
- Credit Suisse First Boston increased its estimates on Telus Corp. to $2.56 from $2.49 for 2006 and to $3.11 from $3.10 for 2007 based on a model of lower amortization, depreciation and financing expenses going forward.
Other
- CIBC World Markets increased its estimates on Alvarion on continued financial improvements and encouraging trends as the company refocuses its cellular group away from CDMA. New estimates are $206.1 million and a loss of 7 cents, up from $203.3 million and a loss of 8 cents. Estimates for 2007 change to $248.2 million and 20 cents from $244.9 million and 23 cents.
- Piper Jaffray lowered its 2006 estimates on Novatel Wireless based on higher-than-expected operating expenses and continued pressure on UMTS PC card pricing and volumes. New estimates are 11 cents and $191 million, down from 25 cents and $203 million. For 2007, estimates drop from 50 cents on $269 million revenues to 48 cents on $264 million revenues.
- CIBC World Markets raised its estimates on Brightpoint after the company delivered a solid first quarter. For 2006, it increased its revenue and EPS estimates to 2.52 billion and $1.03 from $2.56 billion and 96 cents per share. For 2007, CIBC increased its estimates to $2.75 billion and $1.18 from $2.78 billion and $1.17.
- First Albany Capital raised its revenue estimates on LCC International Inc. to $161.2 million from $160 million despite missing revenue estimates during the first quarter. The company said it believes LCC is in the first stages of a turnaround. Avondale Partners reduced its 2007 revenue estimates from $195.1 million to $194 million and maintained its 10 cents per share earnings estimate on the company.
- First Albany Capital lowered its estimates on Wireless Facilities after the company substantially missed first-quarter revenue estimates. For 2006, First Albany expects revenue of $358.4 million, down from its prior estimate of $400 million. Its EPS estimate for the year drops to 6 cents from 18 cents. The firm noted that WFII is transitioning its business away from large wireless deployments and is seeking to grow its government business and to diversify its commercial wireless business. Credit Suisse First Boston lowered its price target on WFII to $6 from $7 and lowered its 2006 estimates to 9 cents on $397 million from 15 cents on $408 million.
- RBC Capital Markets raised its price target on SBA Communications Corp. to $29 from $27 after the company reported better-than-expected first-quarter results. Morgan Stanley raised its price target on the company to $29 from $27.
- RBC Capital Markets lowered estimates and its price target on Global Signal, which reported first-quarter results that missed the firm’s estimates. The company’s new price target is $53, down from $54.
- Piper Jaffray raised its price target on Sierra Wireless Inc. from $19 to $23 after the company’s channel checks indicated strong HSDPA momentum.
- R.W. Baird raised its price target on NeuStar Inc. to $42 from $39 on strong first-quarter results and higher guidance. In addition, it raised its full-year 2006 estimates to $324.5 million and 90 cents per share from $305.6 million and 85 cents per share.
- Harris Nesbitt raised its estimates on Qualcomm Inc. after the company updated analysts on its operations. Based on strong demand for the company’s entry-level chipsets and EV-DO processors, Harris Nesbitt raised its third-quarter EPS estimates on Qualcomm to 40 cents from 38 cents and bumped 2006 EPS estimates to $1.60 from $1.58.
- Prudential Equity Group upgraded Lightbridge Inc. from underweight to neutral after the company reported strong first-quarter results. At the same time, Prudential cut its 2006 revenue forecasts on the company to $107 million from $108 million but bumped its 2006 EPS estimates on Lightbridge to 58 cents from 41 cents. R.W. Baird raised estimates on Lightbridge from 41 cents to 54 cents for 2006 and from 52 cents to 58 cents for 2007. Baird also raised its price target on Lightbridge to $15 from $10.
- Piper Jaffray raised its estimates on InterDigital Communications on lower-than-expected operating expenses. For 2006, it expects EPS of $4.20 on revenues of $505 million, up from EPS of $4 on revenues of $505 million. For 2007, it expects EPS of 21 cents on revenues of $169 million from EPS of 16 cents on revenues of $169 million.
