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
- R.W. Baird lowered its rating on Sprint Nextel Corp. to neutral from outperform on continuing concerns about postpaid subscriber growth and integration risks.
Handset and infrastructure vendors
- Prudential Equity Group adjusted its EPS estimates for this year on UTStarcom Inc. to a loss of $1.01 from a loss of $2.09 after the company released quarterly earnings information. RBC Capital Markets adjusted its forecasts on the company from revenues of $2.46 billion and a loss of $1.55 per share to revenues of $2.55 billion and a loss of 74 cents per share for 2006. Credit Suisse First Boston lowered its 2007 estimates on the company to a loss of 7 cents on revenues of $2.7 billion from a return of 15 cents on revenues of $2.9 billion following the earnings report.
- RBC Capital Markets downgraded its opinion on Nokia Corp. to sector perform from outperform and decreased its price target on the company from $24 to $22 on concerns about the integration of Nokia’s infrastructure business with that of Siemens.
Other
- Standard & Poor’s Ratings Services assigned its B- corporate credit rating to Iridium Satellite L.L.C. The outlook is negative. “The ratings on Iridium reflect a vulnerable business risk profile from participation in a niche market with uncertain long-term customer demand, a small revenue base, substantial long-term satellite replacement capital expenditures requirements to continue current operations beyond 2014, and competition from other MSS providers and terrestrial wireless carriers,” said Standard & Poor’s credit analyst Eric Geil.
- Credit Suisse First Boston upgraded RF Micro Devices to neutral from underperform and raised its price target to $8 from $7.20. CSFB attributed the upgrade to the company’s low valuation, good customer exposure and the ramp of its transceiver into Motorola and possibly Nokia by the end of the year.
- Credit Suisse First Boston lowered its estimates on Radio Shack due to continued struggles at the company. For the second quarter, CSFB lowered its EPS estimate on Radio Shack to 14 cents from 20 cents. It also lowered its price target on the company to $15 from $18.
- Credit Suisse First Boston upgraded Intersil Corp. to outperform from neutral, based on potential for the company’s strategy to drive material revenue and earnings growth.
- First Albany Capital raised its price target on InterDigital Communications Corp. to $40 from $35 after the analyst firm updated its mobile-phone industry forecast. First Albany said InterDigital is well positioned to add new licensees for its third-generation patents.
- R.W. Baird initiated coverage on Amdocs Ltd. with an outperform rating and a $42 price target.
- Piper Jaffray raised its estimates on OmniVision Technologies after the company reported fiscal fourth-quarter results on the high end of guidance. Piper Jaffray raised its calendar 2006 estimates on the company to EPS of $1.62 from $1.52 and to revenues of $586 million from $542.7 million. It also raised its price target on the company a dollar to $31.
