Financial ratings wrap-up: MetroPCS, Apple, Sierra Wireless and more

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
–Standard & Poor’s Ratings Services affirmed its CCC rating on Cricket Communications Inc.‘s $1.035 billion of senior unsecured notes due 2014 and affirmed its B- corporate credit rating on Leap Wireless International Inc.
–Standard & Poor’s Ratings Services revised its outlook on MetroPCS Communications Inc. to positive from stable and affirmed its CCC rating on its subsidiary MetroPCS Wireless Inc.’s $1.3 billion of 9.25% senior unsecured notes due 2014. “The outlook revision reflects the company’s continued progress in growing its overall revenues and EBITDA from the wireless markets it established since 2002,” said Standard & Poor’s credit analyst Catherine Cosentino. Morgan Stanley initiated coverage on MetroPCS at equal weight with a $32 price target.
Handset and infrastructure vendors
–CIBC World Markets upgraded Motorola Inc. to sector outperformer from sector performer and set a $23 price target on the company. The analyst firm said it sees several positive, below-the-surface trends that make it optimistic about Motorola’s future potential, although it still anticipates a weak second quarter.
–CIBC World Markets raised its estimates on Nokia Corp., saying channel checks suggest very strong demand trends. 2007 estimates increase to $70.7 billion in revenues and EPS of $1.73.
–Credit Suisse First Boston raised its price target on Apple Inc. to $140 from $120 in anticipation of the launch of the iPhone. It also raised its estimates on the company’s earnings per share to $3.59 from $3.56 for 2007 and to $4.43 from $4.30 for 2008. Prudential Equity Group raised its price target on the company to $125 from $115 in part on the potential of the iPhone product.
–Credit Suisse First Boston raised its price target on Alcatel-Lucent to about $18.25.
Other
–RBC Capital Markets raised its price target on Aruba Networks to $18 from $16, citing revenue growth. It also adjusted its estimates on the company to a loss of 5 cents per share from a loss of 14 cents per share for 2007 and to profit of 10 cents per share from profit of 6 cents per share for 2008.
–CIBC World Markets upgraded Sierra Wireless Inc. to sector outperformer from sector perfomer and set a $28 price target on the company on positive trends. RBC Capital Markets raised its price target on Sierra Wireless to $24 from $20, saying the second quarter is tracking in line to above expectations. It also raised its estimates on the company’s EPS to 91 cents from 88 cents for 2007 and to $1.16 from $1.05 for 2008.