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

• Morgan Stanley lowered its rating on Telus from overweight to equal weight based on valuation. RBC Capital Markets raised its price target on the company to $75 from $60.

Handset and infrastructure vendors

• Credit Suisse First Boston started coverage on Palm Inc. with a neutral rating and a $17 price target.

   

• Credit Suisse First Boston lowered its estimates on Motorola Inc., saying it believes the company will continue to invest in share gains in the near term. For 2006, it lowered its earnings per share estimates to $1.32 from $1.33 and maintained its 2007 estimates at $1.57.

Other

• BMO Capital Markets lowered its estimates on Xilinx after the company lowered its third-quarter guidance. For 2007, BMO lowered its EPS estimates on the company to $1.18 from $1.22, and for 2008 to $1.28 from $1.31. BMO maintained its market perform rating on the company. Prudential Equity Group lowered its price target on the company to $22 from $23 and its 2007 EPS estimates to 99 cents from $1.05. RBC Capital Markets also lowered its estimates on the company. For 2007 it expects EPS of $1.01 on revenues of $1.92 billion, down from EPS of $1.03 on revenues of $1.94 billion. Credit Suisse First Boston lowered its estimates on Xilinx for 2007 to 94 cents on $1.9 billion from 95 cents on $1.95 billion. R.W. Baird lowered its estimates on the company to 97 cents from $1.01 for 2007 and to $1.14 from $1.20 for 2008.

   

• RBC Capital Markets lowered its estimates on Comverse Technology Inc. after the company reported solid second-quarter financial results. RBC pointed to what it described as the company’s decelerating business momentum for its action. The company’s new EPS estimate for Comverse for 2007 is $1.10, down from $1.12.

   

• Pacific Growth Equities raised its rating on Broadcom Corp. to buy from neutral saying the company could show strength in the Bluetooth and 802.11n segments.

   

• Standard & Poor’s Ratings Services placed its BBB- corporate credit rating on Freescale Semiconductor on CreditWatch with negative implications based on reports of a possible leveraged buyout. “Standard & Poor’s placed the ratings on CreditWatch following press reports that the company was the target of a possible leveraged buyout by a group of private equity firms,” said Standard & Poor’s credit analyst Bruce Hyman. The company has acknowledged that it is in “transaction” negotiations. BMO Capital Markets raised its price target on the company to $36 on deal speculation.