Financial ratings wrap-up: Verizon, Motorola, Texas Instruments 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
–Credit Suisse First Boston lowered its estimates on Verizon to $2.66 from $2.70 for 2008. R.W. Baird lowered its estimates on the carrier to $2.65 from $2.69, noting strong overall results with mixed wireline metrics. RBC Capital Markets lowered its price target on Verizon to $43 from $44 and trimmed its EPS estimates on the company to $2.73 from $2.77 for 2008.
–Standard & Poor’s Ratings Services lowered its rating on Sprint Nextel Corp. to BBB- from BBB and removed all of the company’s ratings from CreditWatch where they were placed with negative implications in October. The outlook is negative. “The downgrade is based on our assessment that Sprint Nextel’s business risk profile is no longer supportive of a ‘BBB’ rating given the ongoing operational issues, which have plagued the company since the August 2005 merger and have resulted in continued erosion of its subscriber base and elevated churn,” said Standard & Poor’s credit analyst Allyn Arden. “Because management faces significant challenges in improving operations, we do not expect a reversal of these negative operating trends in 2008. Nevertheless, the company’s good liquidity was a key factor in limiting the downgrade to only one notch.”
–Credit Suisse First Boston lowered its price target on AT&T to $49 from $50 after the company reported strong wireless results but weakness in its access line and DSL businesses.
–Credit Suisse First Boston lowered its price target on Embarq to $57 from $59.
Handset and infrastructure vendors
–Oppenheimer reduced its price target on Motorola to $15 from $21 on concerns about its turnaround. Credit Suisse First Boston lowered its price target on Motorola to $17 from $24, citing near-term challenges. CSFB also lowered its estimates on the company to EPS of 21 cents from 77 cents for 2008 and to 71 cents from $1.31 for 2009. Lehman Brothers lowered its price target on the company to $13 from $21. Goldman Sachs lowered its price target on Motorola to $12 from $18. Standard & Poor’s Ratings Services cut its rating on Motorola to BBB from A-, citing continued deterioration in the company’s mobile device unit operating performance.
–Lehman Brothers lowered its price target on Nokia to $40 from $41 but raised its estimates on the company to $2.04 from $1.90 for 2008 and to $2.50 from $2.34 for 2009. Lehman noted the company’s healthy market share and further margin expansion.
–Lehman Brothers lowered its price target on L.M. Ericsson to $25 from $27, saying it expects the company to make a slow but steady 2008 recovery.
Other
–R.W. Baird upgraded OmniVision Technologies to outperform from neutral, noting recent market share gains. The firm adjusted its estimates on the company to $1.67 rather than $1.71 for 2008 and $1.68 from $1.63 for 2009.
–Lehman Brothers slightly lowered its estimates on Qualcomm after the company released in-line December quarter results and conservative guidance. New estimates are $2.10 rather than $2.12 for 2008 and $2.30 rather than $2.31 for 2009.
–Goldman Sachs lowered its price target on Tellabs to $6.50 from $7.50 after the company issued flat guidance.
–Lehman Brothers adjusted its estimates on Texas Instruments. The firm expects EPS of $1.83 rather than $1.81 for 2008 and $2.13 rather than $2.16 for 2009 after the company reported in-line fourth-quarter results. Credit Suisse First Boston lowered its price target on the company to $30 from $35 and reduced its 2008 estimates to $1.97 on revenues of $13.98 billion from $2.02 and $14.6 billion. R.W. Baird lowered its price target on TI to $36 from $38.
–R.W. Baird downgraded its rating on Plantronics to neutral and lowered its price target to $22 from $32 after the company reported revenues that were slightly below expectations.