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.

Carrier
• Morgan Stanley raised its industry view on the telecom services business to in-line from cautious based partially on positive expectations for AT&T. The company increased its price target on the company to $40 from $37. Credit Suisse First Boston raised its estimates on AT&T Inc., saying margin improvement and data trends were better than it originally forecasted. Fourth-quarter EPS estimates increase to 59 cents on $5.1 billion in revenues from 56 cents on $4.9 billion.
  Handset and infrastructure vendors
• RBC Capital Markets raised its EPS estimate on Nokia Corp. to $1.48 from $1.42 for 2007 after the company reported mixed fourth-quarter results. CIBC World Markets lowered its estimates on the company to $1.58 from $1.70 for 2007.
• Credit Suisse First Boston downgraded LG Electronics to neutral from outperform based on concerns about the company’s display and media division.
• RBC Capital Markets lowered its estimates on Alcatel-Lucent after the company reported revenue shortfalls. For 2006 it expects the company to report EPS of 44 cents rather than 79 cents; 81 cents rather than 99 cents for 2007; and $1.04 rather than $1.29 for 2008.
• CIBC World Markets adjusted its estimates on Motorola Inc., saying it believes it will be late this year before the company sees earnings growth accelerate. For 2007 it expects sales of $47.5 billion and earnings of $1.21 per share, rather than $44.8 billion and $1.15 per share. For 2008, estimates change to $51.3 billion and $1.54 from $46 billion and $1.37. BMO Capital Markets lowered its estimates on Motorola to $1.20 from $1.31 for 2007 and to $1.55 from $1.57 for 2008. Credit Suisse First Boston lowered its estimates on the company to $1.13 from $1.19 for 2007. Goldman Sachs adjusted its estimates on Motorola to $1.23 on revenues of $47.4 billion for 2007, down from $1.26 on $48 billion, and to $1.43 on revenues of $50.21 billion from $1.36 on $50.45 billion. RBC Capital Markets lowered its 2007 EPS estimate on the company to $1.20 from $1.22. Lehman Brothers lowered its estimates on Motorola to $1.13 from $1.20 for 2007 and to $1.13 from $1.18 for 2008.

  Other

• CIBC World Markets adjusted its estimates on RF Micro Devices to account for slightly higher operating expenses and tax rate. The company now expects EPS of 47 cents on revenues of $1.02 billion rather than 45 cents on revenues of $1.01 billion for 2007, and 54 cents on revenues of $1.14 billion rather than 58 cents on revenues of $1.13 billion for 2008. Credit Suisse First Boston raised its estimates on the company to 36 cents on revenues of $1.02 billion from 29 cents on revenues of $1.01 billion for 2007, and to 48 cents on revenues of $1.13 billion from 34 cents on revenues of $1.12 billion for 2008.
• First Albany Capital lowered its estimates on Tellabs Inc. following the company’s fourth-quarter earnings report. New estimates for 2007 are EPS of 43 cents on revenues of $2.005 billion, down from 47 cents on revenues of $2.09 billion. Robert W. Baird lowered its estimates on the company to 50 cents from 55 cents for 2007.
• Prudential Equity Group lowered its estimates and price target on Texas Instruments Inc. on declining visibility, slower-than-expected ramp-up of high-end W-CDMA handset shipments and greater sell-in than sell-out. The company’s new price target is $34, down from $35. Its new 2007 EPS estimate is $1.59, down from $1.86. Credit Suisse First Boston lowered its estimates on TI to $1.50 on $13.21 billion in revenues from $1.67 on $14.29 billion for 2007. It also lowered its price target on the company to $37 from $40. Robert W. Baird lowered its estimates on TI to $1.38 from $1.48 for 2007.
• CIBC World Markets adjusted its estimates on Qualcomm Inc. after the company reported in-line results for the first fiscal quarter of 2007. New estimates are $1.79 on $8.51 billion in revenues from $1.82 on $8.76 billion for 2007 and $2.06 on $9.6 billion from $2.09 on $10 billion in revenues for 2008. Credit Suisse First Boston also lowered its estimates on Qualcomm to $1.57 from $1.62 for 2007.
• First Albany Capital raised its estimates on >Andrew Corp. in advance of the company’s first-quarter earnings report scheduled for Feb. 1. The company now expects Andrew to report earnings of 57 cents on revenues of $2.305 billion, up from 53 cents on revenues of $2.275 billion. Lehman Brothers lowered its estimates on Andrew to 51 cents from 54 cents for 2007.