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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
- Prudential Equity Group initiated coverage on Leap Wireless with an overweight rating and a $90 price target. The firm said it sees Leap as a compelling growth story and expects its revenues to quintuple over the next 10 years.
- Standard & Poor’s Ratings Services revised its outlook on iPCS Inc. to negative from stable and affirmed its B- corporate credit rating. “The outlook revision reflects our concerns that iPCS’ financial policy is becoming more aggressive at a time when its strained affiliate relationship with Sprint Nextel Corp. is negatively affecting operations,” said Standard & Poor’s credit analyst Susan Madison.
Handset and infrastructure vendors - CIBC World Markets adjusted its estimates on Research In Motion Ltd. after the company’s results came in below CIBC’s aggressive expectations. The firm said it sees growth opportunities and a strong foundation for RIM but noted concerns based on high investor expectations for the company. Its new estimates on RIM for fiscal 2008 are EPS of $4.84 on revenues of $4.68 billion from $4.88 on revenues of $4.55 billion. It also raised its 2009 revenue estimate on the company to $5.93 billion from $5.79 billion. Credit Suisse First Boston raised its price target on RIM to $100 from $75 and raised its 2008 estimates on the company to $4.44 on $4.4 billion in revenues from $3.72 on $3.8 billion. BMO Capital Markets to $4.65 from $4.50 for 2008.
Other - RBC Capital Markets started coverage on Ceragon Networks with an outperform rating and an $8 price target.
- Credit Suisse First Boston adjusted its estimates on Qualcomm Inc., saying it expects W-CDMA adoption to accelerate and push the company’s revenue and EPS higher than expected. Its 2008 EPS estimates on the company increase to $2.09 from $2.05.
