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 raised its rating on the senior unsecured debt of UbiquiTel Operating Co. to A- from B-. The change follows UbiquiTel’s acquisition by Sprint Nextel Corp.

   

• Standard & Poor’s Ratings Services raised its ratings on the unsecured debt of Nextel Partners Inc. to A- from BB- following the completion of its acquisition by Sprint Nextel Corp.

Handset and infrastructure vendors

• RBC Capital Markets increased its estimates on Palm Inc. after the company delivered in-line quarterly results but soft first-quarter 2007 guidance. However, the company offered stronger back-half 2007 predictions. RBC’s new estimates on the company for 2007 are revenues of $1.9 billion and $1.09 EPS, up from $1.86 billion in revenues and $1.07 EPS. Piper Jaffray slightly raised its estimates on the company from 99 cents EPS on revenue of $1.79 billion to $1.03 EPS on revenue of $1.86 billion. The firm noted disappointing guidance offset by stronger gross margin guidance.

   

• RBC Capital Markets lowered its estimates on Research In Motion Ltd. after the company reported strong first-quarter 2007 results but predicted soft second-quarter subscriber figures. RBC’s estimates on the company dropped to $2.655 billion and $2.96 EPS for 2007, down from $2.660 billion and $3.02 EPS. Its 2008 estimates drop to $3.278 billion and $3.68 EPS from $3.302 billion and $3.87 EPS. BMO Capital Markets raised its EPS estimates on RIM to 74 cents from 73 cents for the second quarter of fiscal 2007. For the full year 2007, the firm raised its EPS estimates to $3.07 from $3.02, and for 2008 it raised its estimates to $3.83 from $3.77. Piper Jaffray raised its estimates on the company from EPS of $3 on revenue of $2.66 billion for 2007 to an EPS of $3.07 and revenues of $2.74 billion. It also increased its price target to $75 from $73.

   

• Prudential Equity Group lowered its estimates on Lucent Technologies Inc., saying spending remains sluggish and it believes some customers may hold purchases until after the company closes its merger with Alcatel. New estimates for the next two quarters are $2.20 billion and $2.40 billion, below Street estimates of $2.34 billion and $2.56 billion. The company’s 2006 EPS estimate drops to 15 cents from 17 cents.

Other

• Avondale Partners L.L.C. reduced its estimates and price target on Plantronics Inc., saying it believes the company could experience Bluetooth margin pressure. The company lowered its price target on Plantronics to $26 from $35 and dropped 2007 EPS estimates from $1.60 to $1.54 and its 2008 estimate to $1.91 from $2.07.

• CIBC World Markets increased its estimates on Novatel Wireless after the company raised its guidance for the second quarter. CIBC’s new estimates for the quarter are $44.4 million and a loss per share of 1 cent, up from revenues of $43 million and a loss per share of 3 cents. It also increased its full-year estimates to 10 cents on $200.3 million in revenues from 6 cents on $195.2 million. 2007 estimates increase to $255.6 million and 41 cents per share from $247.5 million and 36 cents per share.

• Piper Jaffray lowered its estimates on Powerwave Technology and dropped the company’s price target to $15 from $16. New estimates for the June quarter are revenues of $240 million and 13 cents EPS, down from $248 million and 14 cents per share. It reduced its 2006 EPS estimate on the company from 61 cents to 59 cents and its 2007 EPS estimate from 88 cents to 83 cents.