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
- Merrill Lynch initiated coverage on Dobson Communications Corp. with a buy rating and an $11 price target.
- RBC Capital Markets lowered its estimates on Alaska Communications Systems to a loss of 6 cents per share for 2006 from a return of 5 cents. The move reflects non-cash adjustments that incorporate details from the company’s first-quarter report.
- Lehman Brothers adjusted its price target on Sprint Nextel Corp. to reflect the spinoff of its local business. The price target moves to $30 from $33.
Handset and infrastructure vendors
- Prudential Equity Group lowered its revenue and EPS estimates on Nortel Networks after the company held a status update on its cost-cutting measures. Nortel has restated its 2005 financial revenues downward and since guidance was compared with last year’s newly revised results, Prudential lowered its 2006 EPS estimate on the company to 12 cents from 18 cents.
- Credit Suisse First Boston lowered its estimates on Alcatel to EPS of 0.63 Euros from 0.70 Euros for 2006 and to 0.75 Euros from 0.80 Euros for 2007. The change is a result of lower margins in the company’s mobile business.
Other
- Piper Jaffray raised its rating on STMicroelectronics from underperform to market perform after the company emphasized continuing restructuring efforts at an analyst presentation. Piper Jaffray also raised its price target on the company to $17 from $15.
- Standard & Poor’s Ratings Services placed its ratings on American Tower Corp., including its BB+ corporate credit rating, on CreditWatch with negative implications on news the company’s board of directors has appointed a committee to investigate stock option practices. Merrill Lynch lowered its rating on American Tower Corp. from buy to neutral on the option investigation news.
