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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.
Handset and infrastructure vendors
- RBC Capital Markets lowered its rating on Palm Inc. to sector perform from outperform after the company warned its revenues would come in below its previous guidance. The firm also lowered its price target on Palm to $16 from $23. In addition, new earnings per share estimates for the company drop to $1.02 from $1.09 for 2007 and to $1.16 from $1.26 for 2008.
Other
- First Albany Capital raised its price target on InterDigital Communications Corp. from $40 to $43 after the company won a multi-million dollar award in its legal spat with Samsung Electronics Co. Ltd.
- First Albany Capital lowered its rating and estimates on Carrier Access Corp. after the company lowered revenue expectations for the third quarter. The company’s new rating is neutral, from buy. New estimates are a loss of 26 cents per share on $80.8 million in revenues for 2006, down from a return of 9 cents per share on $100.3 million. For 2007, it expects a loss per share of 23 cents on $92.9 million, down from a return of 23 cents on $115.4 million. First Albany pointed to weaker sales at Cingular Wireless L.L.C. as part of the reason for its downgrade of the company.
- First Albany Capital lowered its rating on Stratex Networks Inc. to neutral from buy after it announced plans to merge with Harris Corp.’s Microwave Communications Division. The company said it believes the merger is a smart combination.
- CIBC World Markets started coverage of Sierra Wireless with a sector performer rating, saying it is bullish on the company’s long-term prospects despite possible downside in the short term. The company set 2006 and 2007 EPS estimates at 51 cents and 70 cents respectively.
- Morgan Stanley raised its price target on Global Signal Inc. to $53 from $50.
- Standard & Poor’s Ratings Services affirmed its ratings on Crown Castle International Corp., including its BB corporate credit rating, and removed the ratings from CreditWatch where they had been placed with negative implications in August. The outlook is stable, said S&P. The action came after Crown filed its second-quarter report with the Securities and Exchange Commission.
- RW Baird lowered its price target and estimates on OmniVision Technologies Inc. after the company reported EPS on the low end of expectations. The company’s new price target is $17, down from $20. New estimates for fiscal 2007 are EPS of $1.27, down from $1.46 and for 2008 of $1.08, down from $1.35.
