Financial ratings wrap-up: AT&T, Broadcom, RF Micro Devices 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
–Morgan Stanley resumed coverage of Sprint Nextel with an underweight rating and a price target of $1. FBR Research resumed coverage of the carrier with a market perform rating and a price target of $4.
–Morgan Stanley re-started coverage on Clearwire with an underweight rating.
–Lehman Brothers lowered its estimates on AT&T to $2.81 from $2.83 for 2008 and to $2.86 from $3.04 for 2009 on economic weakness. Morgan Stanley lowered its 2009 EPS estimate on AT&T to $2.75 rather than $3.02 on greater pension expenses. FBR Research resumed coverage on AT&T with an outperform rating and a $38 price target.
–FBR Research resumed coverage on Qwest with a market perform rating and a $4 price target. The firm also restarted coverage on Verizon Communications with an outperform rating and a $41 price target.
–Standard & Poor’s Ratings Services raised its long-term corporate credit rating on Czech Republic-based telecom operator Telefonica Czech Republic to A- from BBB+ with a stable outlook. “The upgrade is attributable to the company’s strong operating performance and prudent financial policy,” said Standard & Poor’s credit analyst Leandro De Torres Zabala.
–Standard & Poor’s Ratings Services lowered its long-term corporate credit ratings on Orascom Telecom Holdings to B from B+ following weaker growth expectations from its Pakistan and Bangladesh operations.
Handset and infrastructure vendors
–Oppenheimer cut its price target on Alvarion to $7 from $8 on lower multiples across the firm’s entire coverage group.
–Standard & Poor’s Ratings Services reduced its corporate credit rating on Motorola to BB+ from BBB due to ongoing mobile device challenges.
–Credit Suisse First Boston cut its price target on Nokia to 10 Euros from12 Euros and lowered its estimates on the company on lower margin estimates.
–Standard & Poor’s Ratings Services lowered its corporate credit rating on Palm Inc. to CCC+ from B- with a negative outlook. “The actions reflects Palm’s announcement that sales in the November 2008 quarter will decline to about half of the August quarter’s level, reflecting challenging economic conditions and market share losses,” said Standard & Poor’s credit analyst Bruce Hyman.
–Oppenheimer lowered its price target on Research In Motion to $50 from $55 after the company pre-announced third-quarter results that confirm handset market softness. The firm said RIM’s pre-announced earnings came in below forecasts that it had already cut twice in the past month.
Other
–R.W. Baird lowered its estimates on Broadcom on lowered fourth-quarter guidance. New EPS estimates are 76 cents rather than 87 cents for 2008 and a loss of 87 cents rather than a loss of 20 cents for 2009. Credit Suisse First Boston lowered its estimates on Broadcom to $1.54 on revenues of $4.59 billion for 2008 and to 66 cents on revenues of $3.88 billion for 2009. Deutsche Bank lowered its price target on the company to $15 from $17. RBC Capital Markets cut its price target on Broadcom to $18 from $22 and reduced its estimates to $1.57 from $1.70 for 2008 and to 81 cents from $1.24 for 2009.
–Oppenheimer cut its price target on RF Micro Devices to $2 from $3 and lowered its estimates on much weaker demand than expected. New EPS estimates are 8 cents on revenues of $900.3 million rather than 16 cents on $979.6 million for 2009 and 3 cents on revenues of $774 million rather than 17 cents on $926.8 million for 2010. Deutsche Bank lowered its price target on RFMD to $1 from $2.
–Deutsche Bank cut its price target on Texas Instruments to $15 from $19 on weak demand. R.W. Baird lowered its estimates on TI to $1.49 from $1.60 for 2008 and to 28 cents from 58 cents for 2009.
–Oppenheimer lowered its price target on Sierra Wireless to $9.50 from $13 after the company announced plans to acquire Wavecom for $275 million. The firm said it is positive on the deal but sees near-term risks.