Financial ratings wrap-up: Leap, Nortel, Brightpoint 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 placed the ratings of Leap Wireless International on CreditWatch with negative implications after the company said it plans to restate certain audited financial statements. R.W. Baird lowered its price target on the company to $40 from $60 and lowered its estimates to a loss of 61 cents from a loss of 11 cents for 2007 and to a loss of 37 cents from a return of 33 cents for 2008.
–Standard & Poor’s Ratings Services cut its corporate credit rating on Alltel Corp. to B+ from BB and removed it from CreditWatch where it was placed with negative implications earlier this year. The outlook is negative. “The downgrade is due to an expected substantial increase in the company’s leverage to around 8x when its leveraged buyout is completed,” said Standard & Poor’s credit analyst Catherine Cosentino.
–Morgan Stanley lowered its estimates on Telephone & Data Systems on wireless margin concerns. New estimates are $2.67, down from $2.68 for 2007, $3.40, down from $3.55 for 2008 and $3.99, down from $4.34 for 2009. For U.S. Cellular, the firm lowered its estimates to $3.06 from $3.25 for 2007, to $3.90 from $4.33 for 2008 and to $5.02 from $5.71 for 2009. R.W. Baird raised its estimates on TDS to $3.86 from $2.86 for 2007 and to $2.79 from $2.73 for 2008. The firm, however, lowered its estimates on U.S. Cellular to $3.89 from $4.04 for 2007 and to $3.44 from $3.52 for 2008, on mixed quarterly results.
Handset and infrastructure vendors
–RBC Capital Markets raised its price target on Research In Motion to $180 from $120, saying the company is positioned for a consumer inflection point within the worldwide smartphone market.
–Credit Suisse First Boston upgraded Nortel Networks to neutral from underperform and raised its price target to $18 from $16 after the company reported third-quarter results. R.W. Baird adjusted its estimates on Nortel Networks, saying it appears the company’s turnaround is finally on track after it announced in-line quarterly results. The company raised its 2007 EPS estimate on Nortel to 89 cents from 47 cents but lowered its 2008 estimate to $1.65 from $1.75. Lehman Brothers raised its price target on the company to $22 from $21 and increased its EPS estimates to 67 cents from 53 cents for 2007 and to $1.29 from $1.25 for 2008.
Other
–CIBC World Markets cut its price target on Qualcomm Inc. to $46 from $51 after the company delivered strong fourth-quarter results but disappointing guidance. Credit Suisse First Boston lowered its estimates on the company to $2.09 from $2.24 for 2008 and to $2.61 from $2.75 for 2009.
–CIBC World Markets raised its price target on Brightpoint to $22 from $18 on strong third-quarter results and gross margins that beat expectations. The firm also increased its estimates on the company to 72 cents from 62 cents for 2007 and to $1.12 from 98 cents for 2008. Credit Suisse First Boston raised its price target on the company to $20 from $18 and increased its estimates on the company to 64 cents from 57 cents for 2007 and to $1.10 from $1.05 for 2008.
–Lehman Brothers raised its price target on American Tower to $51 from $47 on improving demand trend0073. It also raised its EPS estimates on the company to 21 cents from 14 cents for 2007 but lowered its 2008 estimate on the company to 32 cents from 47 cents. Lehman also raised its price target on Crown Castle to $49 from $48 and on SBA Communications to $45 from $38.