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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.
- Carrier
- Credit Suisse First Boston lowered its estimates on Sprint Nextel Corp. based on expectations of lower postpaid net adds during the fourth quarter and first quarter of 2007. The firm’s new EPS estimate for 2007 is $1.32, down from $1.35.
- Credit Suisse First Boston upgraded Vodafone to outperform from neutral in part due to the carrier’s likelihood of beating forecasts in its European mobile division
Handset and infrastructure vendors - Prudential Equity Group downgraded Nokia Corp. to neutral from outperform and lowered the company’s price target to $22 from $24 on concerns of a slowing handset market, the company’s new handset strategy and new Web-services strategy, the integration of Nokia-Siemens, a pending legal battle with Qualcomm Inc. and a shift in handset momentum to developing markets.
- RBC Capital Markets downgraded Alcatel-Lucent to sector perform from outperform on internal and external uncertainties and persisting integration concerns.
- CIBC World Markets initiated coverage on Research In Motion Ltd. with a sector perform rating, saying the company faces greater risks in its shift toward the consumer market but is also poised for greater growth. RBC Capital Markets downgraded RIM to sector perform from outperform while maintaining a $140 price target on the company, noting pressures on valuation.
- Prudential Equity Group and Robert W. Baird dropped coverage on Lucent Technologies Inc. after the company completed its merger with Alcatel.
- Robert W. Baird adjusted its estimates on Nortel Networks to reflect a 1-for-10 reverse stock split implemented by the company. New estimates for 2007 are 74 cents rather than 7 cents and 2.11 for 2008 rather than 20 cents. RBC Capital Markets also adjusted its estimates on Nortel following the split. New estimates are 11 cents rather than 3 cents for 2006 and 18 cents rather than 8 cents for 2007.
International
- Credit Suisse First Boston downgraded KT Freetel to underperform from neutral on a short-term competitive outlook that is expected to drive the company’s marketing costs higher.
Other - First Albany Capital adjusted its estimates on InterDigital Communications Corp. after the company released fourth-quarter guidance. New estimates are EPS of $3.97 on revenues of $478.4 million, rather than $4.02 on $482.2 million, for 2006 and to 91 cents on revenues of $212 million, rather than 90 cents on revenues of $211.8 million, for 2007.
- BMO Capital Markets dropped coverage on Freescale Semiconductor upon the close of its acquisition by a private equity consortium led by the Blackstone Group. Standard & Poor’s Ratings Services lowered its rating on Freescale to BB- from BB+ and removed it from CreditWatch with negative implications, where it was placed in September when the company announced it was considering a business transaction that turned out to be a leveraged buyout. The outlook on the company is negative.
- Robert W. Baird downgraded OmniVision Technologies to underperform from neutral and cut its price target to $10 from $15 due to poor margin guidance. New estimates for 2006 are 86 cents, down from $1.04, and 16 cents for 2007, down from 60 cents.
- Standard & Poor’s Ratings Services affirmed its ratings on American Tower Corp., including its BB+ corporate credit rating, and removed the company from CreditWatch where it was placed in May with negative implications on stock options investigation worries. The outlook on the company is stable.
