Financial ratings wrap-up: AT&T, Leap, Novatel 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 downgraded its industry rating on the telecommunications services sector from overweight to market weight. In related action, CSFB downgraded both AT&T and Verizon to neutral from outperform and lowered its estimates on Sprint Nextel and Qwest. The company’s new estimates for Sprint Nextel are EPS of 49 cents down from 52 cents for 2008 and 31 cents down from 46 cents for 2009. Its 2009 EPS estimate for Qwest drops to 50 cents from 51 cents. “We believe the trends that have driven the sector over the last couple years could weaken in 2008,” said CSFB. “We think the primary drivers of this pressure could be a potential wireless price war, sparked by the introduction of flat rate plans, and macroeconomic weakness.”
–R.W. Baird downgraded AT&T to neutral from outperform on concerns about industry pricing pressure.
–Lehman Brothers cut its price target on Sprint Nextel to $11 from $20 and also lowered its EPS estimates on the company to 69 cents from 92 cents for 2009.
–Lehman Brothers adjusted its EPS estimates on Leap Wireless to a loss of $1.09 rather than a loss of 51 cents for 2008 and a loss of $1.86 rather than a loss of $1.94 for 2009. Morgan Stanley lowered its price target on Leap to $69 from $76.
–Morgan Stanley lowered its price target on MetroPCS to $31 from $33.
Handset and infrastructure vendors
–Lehman Brothers raised its estimates on Research In Motion to $2.24 from $2.23 for 2008 and to $3.44 from $3.36 for 2009 after the company pre-announced solid fourth-quarter additions.
–Oppenheimer downgraded Motorola to perform from outperform and withdrew its price target on the company. The firm noted a material shortfall in first-quarter handset demand.
–RBC Capital Markets lowered its price target on Nortel Networks to $10 from $16, saying it believes the demand outlook is weakening for traditional telecom equipment.
Other
–Morgan Stanley lowered its price target on American Tower to $51 from $52.
–Oppenheimer cut its price target on Novatel Wireless to $20 from $33 after the company offered disappointing guidance. The firm said it believes the guidance represents a temporary lull and that long-term growth drivers remain. Avondale Partners lowered its estimates on Novatel to $1.44 on revenues of $500.3 million from $1.52 on $518.3 million for 2008. Avondale also lowered its price target on the company to $20 from $27.50.
–Lehman Brothers raised its price target on Syniverse Holdings to $22 from $21 after the company reported solid fourth-quarter results. It also raised its estimates on the company to $1.11 from $1.10 for 2008 and to $1.26 from $1.25 for 2009.