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 raised its estimates on AT&T after the carrier reported strong EPS for the first quarter. New estimates are $2.85 rather than $2.75 for 2007 and $3.10 rather than $3 for 2008. Credit Suisse First Boston raised its price target on AT&T to $45 from $41.
- Robert W. Baird raised its price target on United States Cellular Corp. to $76 from $75 after the carrier pre-released strong first-quarter net customer additions. It also raised its estimates on the company to $2.38 from $2.25 for 2007 and to $2.96 from $2.68 for 2008.
- Prudential Equity Group lowered its estimates on Verizon Communications to reflect a higher-than-expected tax rate. New estimates are $2.15 rather than $2.20 for 2007 and $2.25 rather than $2.30 for 2008.
- Standard & Poor’s Ratings Service cut its corporate credit rating on Telephone & Data Systems to BB+ from BBB-. The ratings remain on CreditWatch, where they were placed with negative implications in November. “The downgrade reflects our reduced confidence regarding management’s ability to effectively oversee its financial reporting requirements and implement improvements to its internal control and accounting systems,” said Standard & Poor’s credit analyst Catherine Cosentino.
Handset and infrastructure vendors
- Credit Suisse First Boston raised its price target on Texas Instruments Inc. to $43 from $37 on significant first-quarter upside. In addition, it raised its estimates on the company to EPS of $1.78 on revenues of $13.99 billion from $1.50 on $13.21 billion for 2007 and to $2.14 on $15.45 billion from $1.84 on $14.48 billion for 2008. Prudential Equity Group raised its price target on TI to $44 from $38 and increased its estimates to $1.84 from $1.72 for 2007 and to $2.33 from $2.13 for 2008. R.W. Baird raised its price target on the company to $36 from $30 and increased its estimates to EPS of $1.76 on revenues of $13.98 billion from $1.39 on $13.38 billion for 2007
- BMO Capital Markets raised its price target on Nokia Corp. to $30 from $25, saying the company’s device portfolio and margins are improving. The firm also raised its estimates on the company to EPS of $1.58 from $1.44 for 2007 and to $1.86 from $1.68 for 2008. Lehman Brothers raised its price target on Nokia to $27 from $25. Prudential Equity Group raised its price target on Nokia to $24 from $22 and increased its 2007 EPS estimate to $1.60 from $1.47.
- Lehman Brothers upgraded Palm Inc. to equal weight based on rapid market growth, a steadying competitive landscape and modest valuation. The company also increased its price target on Palm to $19 from $12.
- Robert W. Baird lowered its estimates on Alcatel-Lucent due to challenging global trends. New estimates are 70 cents, down from 85 cents for 2007 and 90 cents, down from $1.04, for 2008.
Other - CIBC World Markets raised its price target on Qualcomm Inc. to $51 from $47 after the company reported solid quarterly results. It also adjusted its estimates on Qualcomm to EPS of $1.87 on sales of $8.65 billion from $1.88 on $8.75 billion for 2007 and to $1.96 on $9.11 billion from $2.10 on $10 billion for 2008. Credit Suisse First Boston raised its price target on Qualcomm to $58 from $52. Prudential Equity Group raised its estimates on the company to EPS of $1.70 from $1.63 for 2007, but lowered 2007 EPS estimates to $1.80 from $1.89. Goldman Sachs raised its price target on Qualcomm to $58 from $55.
- CIBC World Markets raised its estimates on Skyworks Solutions after the company delivered in-line quarterly results. The company’s new estimates are EPS of 45 cents on revenues of $732.8 million from 36 cents on $715.3 million for 2007 and 51 cents on $756.3 million from 46 cents on $751.2 million for 2008. Credit Suisse First Boston raised its price target on the company to $7.50 from $7.
- RBC Capital Markets raised its price target on Sierra Wireless from $16 to $17 after the company reported in-line first-quarter results. The company also raised its estimates on Sierra to 64 cents from 50 cents for 2007 and to 71 cents from 60 cents for 2008.
- CIBC World Markets lowered its estimates on RF Micro Devices on weak guidance. New estimates are 22 cents on revenues of $910 million, down from 38 cents on $995 million for 2008. Credit Suisse First Boston lowered its price target on RFMD to $7.50 from $8.50. Lehman Brothers lowered its price target on the company to $8 from $8.50.
- Prudential Equity Group slightly raised its 2007 EPS estimates on Tellabs to 40 cents from 38 cents after the company reported slightly better-than-expected EPS for the first quarter. First Albany Capital adjusted its estimates on Tellabs to EPS of 34 cents on revenues of $2.01 billion from 43 cents on $2.00 billion.
- Credit Suisse First Boston raised its price target on RadioShack to $30 from $25 after the company announced further work force reductions.
