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 dropped coverage on Nextel Partners Inc. following its acquisition by Sprint Nextel Corp.
Handset and infrastructure vendors
- RBC Capital Markets upgraded Palm Inc. to outperform from sector perform on expectations of strong first-quarter 2007 guidance. It also adjusted its fiscal 2007 estimates on the company to $1.858 million and $1.07 pro forma EPS from $1.854 million and $1.02 pro forma EPS.
- Standard & Poor’s Ratings Services raised its ratings on Motorola Inc., including upping its corporate credit rating from BBB+ to A- and its short-term rating from A-2 to A-1. The outlook on the company is stable. “The rating actions reflect the company’s improving profitability as it expands its position in the mobile-phone market, notwithstanding aggressive competition,” said Standard & Poor’s credit analyst Bruce Hyman. “Also, its balance sheet has strengthened.”
- RBC Capital Markets lowered its price target on Research In Motion to $73 from $80 and adjusted its earnings estimates on the company to reflect lower subscriber momentum. The firm’s new estimates on RIM for 2007 are $3.02, down from $3.05, and for 2008 it decreased its EPS estimate to $3.87 from $3.95.
Other
- Avondale Partners started coverage on mobile entertainment outsourcer WiderThan Co. Ltd. with a market outperform rating and an $18 price target. The company currently trades at about $10.40. Avondale said WiderThan is well-positioned in an emerging growth industry.
