The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
- Carrier
- Lehman Brothers raised its estimates on Dobson Communications on the potential the company will seek strategic alternatives in advance of the upcoming 700 MHz spectrum auction. The company’s new price target is $8, up from $7. EPS estimates increase from a loss of 9 cents to a loss of 1 cent for 2006 and to 26 cents from 23 cents for 2007.
Handset and infrastructure vendors - RBC Capital Markets lowered its estimates on Palm Inc. after the company provided disappointing guidance. New EPS estimates are 67 cents, down from 73 cents, for 2007, and 80 cents, down from 84 cents, for 2008. Revenue estimates drop from $1.584 billion to $1.578 billion for 2007 and from $1.766 billion to $1.769 billion for 2008. Credit Suisse First Boston also lowered estimates on the company to $1.56 billion from $1.61 billion for 2007 and to $1.67 billion from $1.78 billion for 2008. EPS estimate drop to 60 cents from 73 cents for 2007 and to 74 cents from 88 cents for 2008. Lehman Brothers lowered its price target on Palm to $12 from $14 and lowered its estimates to 66 cents from 70 cents for 2007 and to 62 cents from 82 cents for 2008.
- Cowen and Company downgraded Motorola Inc. to neutral from outperform, noting a slow start to the company’s latest products and a softening North American market.
- Credit Suisse First Boston raised its price target on Research In Motion Ltd. to $75 from $65, saying it expects Blackberry customers to continue to increase but the company’s business model to come under pressure. CSFB raised its estimates on RIM to $3.31 from $3.18 for 2007 and to $3.65 from $3.37 for 2008. Lehman Brothers raised its price target on RIM to $140 from $103 and upped its estimates on the company to $3.44 from $3.32 for 2006 and to $4.62 from $4.10 for 2007.
Other
- Pacific Growth Equities started coverage on Qualcomm Inc. with a buy rating.
- Pacific Growth Equities lowered its rating on Skyworks Solutions to neutral from buy based on valuation and expected weakness in the March quarter.
- First Albany Capital upgraded WPCS International Inc. to strong buy from buy and adjusted its estimates after the company reported solid fiscal second quarter 2007 results. The firm now expects EPS of 74 cents on revenues of $75.1 million for 2007, rather than 72 cents on $75.4 million. For 2008, it expects EPS of 93 cents on revenues of $90.5 million, rather than 90 cents on revenues of $90.7 million.
