Financial ratings wrap-up: Verizon, AT&T, Apple 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
–R.W. Baird raised its 2009 EPS estimate on Verizon to $2.97 from $2.89 on news of the company’s pending acquisition of Alltel. Standard & Poor’s Ratings Services revised its outlook on Verizon to negative from stable on the news. “The outlook revision reflects the temporarily heightened leverage that will result from Verizon Wireless’ agreement to acquire Alltel Corp.,” explained Standard & Poor’s credit analyst Catherine Cosentino.
–R.W. Baird lowered its estimates on AT&T following the introduction of Apple’s new 3G iPhone. New estimates are $2.99 rather than $3.10 for 2008 and $3.23 rather than $3.34. The lower estimates are based on expected earnings impact from higher subsidization related to the new iPhone model. Lehman Brothers lowered its price target on AT&T to $49 from $54 and dropped its estimates to $3.03 from $3.12 for 2008 and to $3.42 from $3.53 for 2009.
Handset and infrastructure vendors
–R.W. Baird raised its price target on Apple to $234 from $202 following the introduction of its new 3G iPhone model. It also bumped its 2009 EPS estimate on the company to $6.60 from $6.50.
–Oppenheimer downgraded Motorola to underperform from perform, saying it does not believe the company is delivering on management’s guidance for flat to slightly better handset shipments for the second quarter.
Other
–R.W. Baird lowered its 2009 EPS estimates on Syniverse to $1.39 from $1.44 due to potential loss of business from Alltel after the carrier merges with Verizon Wireless.
–R.W. Baird raised its price target on ADC Telecommunications to $20 after the company exceeded revenues and EPS estimates and raised its guidance. New estimates for fiscal year 2008 are $1.31 rather than $1.20 and for 2009 are $1.38 rather than $1.30. Credit Suisse First Boston raised its price target on ADC to $25 from $23 and lifted its estimates to $1.34 on $1.54 billion in revenues from $1.19 on $1.49 billion for 2008; and to $1.54 on revenues of $1.63 billion from $1.43 on $1.57 billion for 2009. Deutsche Bank raised its price target on ADC to $19.50 from $18.
–RBC Capital Markets lowered its ratings on American Tower, Crown Castle and SBA Communications from outperform to sector perform on valuation and full multiples.