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
- RW Baird lowered its rating on Alltel Corp. to neutral from outperform after the carrier reported disappointing third-quarter results. The company also lowered its price target on Alltel to $56 from $60 and its estimates to $2.09 from $2.40 for 2006 and to $2.47 from $2.84 for 2007. Morgan Stanley lowered its price target on Alltel to $50 from $54. Prudential Equity Group lowered its estimates on the carrier to $2.15 from $2.30 for 2006 and to $2.80 from $3.10 for 2007. Credit Suisse First Boston lowered its price target on the company to $52 from $53 and reduced its estimates to $2.97 from $3.02 for 2006 and to $2.91 from $3.16 for 2007. RBC Capital Markets lowered its 2006 estimates on the company to $2.19 from $2.78 but raised its 2007 estimates to $2.79 from $2.57.
- Prudential Equity Group lowered its estimates on Verizon Communications Inc. to $2.41 from $2.45 for 2006 and to $2.50 from $2.60 for 2007 after the company reported third-quarter results. Credit Suisse First Boston increased its price target on the company to $38 from $37 and raised its 2006 estimates on the company to $2.56. RBC Capital Markets increased its estimates on the company to $2.60 from $2.56 for 2006 and to $2.71 from $2.63 for 2007. RW Baird lowered its estimates on the company to $2.54 from $2.57 for 2006 and to $2.35 from $2.66 for 2007.
- Prudential Equity Group lowered its 2007 EPS estimate on Sprint Nextel Corp. to $1.35 from $1.40 after the company reported third-quarter results. Credit Suisse First Boston also lowered its estimates on the carrier to $1.28 from $1.31 for 2006. RW Baird lowered its estimates on Sprint Nextel to $1.29 from $1.31 for 2006 and to $1.39 from $1.52 for 2007. Merrill Lynch lowered its 2007 estimates on Sprint to $1.25 per share from $1.30 per share.
- Merrill Lynch raised its estimates on AT&T for 2006 to EPS of $2.33 from $2.25. It also raised 2007 estimates to $2.60 from $2.55.
Handset and infrastructure vendors
- BMO Capital Markets raised its price target on Research In Motion to $130 from $110 and increased its estimates on the company to $4.60 from $4.40 on revenues of $4 billion for 2008. The changes were based on anticipated demand for RIM’s new Pearl device.
Other
- RW Baird lowered its estimates on InfoSpace Inc. after the company reported sluggish third-quarter results following the loss of business from Cingular Wireless L.L.C. New estimates are a loss of $1.37 rather than a loss of 2 cents per share for 2006 and a loss of 24 cents rather than a return of 10 cents per share for 2007.
- CIBC World Markets lowered its estimates on Alvarion Ltd. after the company reported solid quarterly results. For 2007, it expects revenues of $240.1 million and EPS of 15 cents, down from $248.2 million and 27 cents.
- Credit Suisse First Boston lowered its price target on Skyworks Solutions to $7.50 from $9.50 after the company reported a mixed third quarter. The firm also lowered its revenue estimates on the company to $810 million from $815 million and for 2007 but raised its EPS estimates to 43 cents from 38 cents.
- First Albany Capital lowered its price target and estimates on InterDigital Communications Corp. after the company reported in-line third-quarter results. First Albany said a sell off of the company’s shares that occurred immediately after the earnings release was overdone. Its new price target on the company is $40, down from $43. Estimates drop to 90 cents on revenues of $211.8 million from 98 cents on revenues of $215.6 million for 2007.
- RBC Capital Markets raised its price target on Crown Castle International after the company reported strong third-quarter results. The company’s new price target is $38, up from $37. Lehman Brothers increased its estimates on the company to a loss of 30 cents rather than a loss of 33 cents for 2006 and a loss of 6 cents rather than a loss of 12 cents for 2007.
- CIBC World Markets adjusted its estimates on Sierra Wireless after the company reported mixed third-quarter results. For 2006, the firm expects revenues and earnings of $219.2 million and 48 cents rather than $214.3 million and 51 cents. For 2007, it predicts revenues and earnings of $285.1 million and 69 cents rather than $271.3 million and 70 cents. RBC Capital Markets downgraded the company to sector perform from outperform and lowered its price target to $14 from $20. RBC also lowered its estimates on Sierra to 36 cents from 40 cents for 2006 and to 43 cents from 80 cents for 2007.
- RBC Capital markets lowered its estimates on Openwave Systems to $389 million from $416 million during 2007 after the company provided weak guidance. RBC also lowered 2008 estimates on the company to $434 million from $450 million. RW Baird lowered its estimates on the company to 26 cents from 31 cents for 2006 and to 31 cents from 56 cents for 2007.
- First Albany Capital upgraded @Road to strong buy from buy after the company reported third-quarter results. It also raised its price target on the company to $10 from $7.50 and its estimates to 2 cents profit on $100.1 million in revenues for 2006, up from a loss of 3 cents on revenues of $99.7 million.
- First Albany Capital revised its estimates on Andrew Corp. after the company reported quarterly earnings. For 2007, the firm expects EPS to drop to 53 cents from 61 cents while revenues are expected to increase to $2.275 billion from $2.203 billion. BMO Capital Markets reduced its 2007 estimates on the company, to 57 cents from 65 cents. RW Baird raised its estimates on Andrew, to 44 cents from 41 cents for 2006, but it lowered 2007 estimates to 63 cents from 65 cents for 2007.
