Financial ratings wrap-up: Clearwire, Nokia, 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.
Carriers
–Morgan Stanley reinstated its equal-weight rating on Verizon Communications after the company’s stock recently outperformed both the market and the telecom sector. Barclays Capital lowered its EPS estimates on the company to $2.54 from $2.58 for this year and to $2.63 from $2.64 for next year.
–Standard & Poor’s Ratings Services assigned its B- corporate credit rating to Clearwire with a stable outlook. “The very low speculative-grade rating on Clearwire reflects our opinion that the company will have large EBITDA losses and discretionary cash flow deficits for at least several years coupled with a substantial debt burden,” said Standard & Poor’s credit analyst Allyn Arden, ” It also reflects our view that it has a vulnerable business position as a developmental stage company with uncertain growth prospects for fourth-generation (4G) wireless broadband services, a limited operating history, technology risk, and significant competition from existing wireline and wireless broadband services.”
–RBC Capital Markets downgraded MetroPCS to sector perform and lowered its price target to $15 from $19 on the weak economy and increased competition.
–RW Baird upgraded Leap Wireless to outperform on strong current and expected subscriber trends.
Handset and infrastructure vendors
–Barclays Capital lowered its price target on Nokia to $13 from $14.50 and cuts its earnings estimates on soft fourth-quarter handset demand and seasonal first-quarter weakness. New estimates are $1.87 rather than $1.91 for 2009 and 98 cents rather than $1.04 for 2010. Barclays Capital adjusted its estimates on Nokia to $1.90 from $1.87 for the current year and to 90 cents from 98 cents for next year. Standard & Poor’s Ratings Services revised its outlook on Nokia to stable from positive on expected weaker operating performance in 2009 due to the macroeconomic downturn. S&P also affirmed it’s a long-term and A-1 short-term corporate credit ratings on the company. “The outlook revision primarily reflects our expectation that global handset sales will fall significantly in 2009,” explained Standard & Poor’s credit analyst Matthias Raab. “This will likely affect Nokia’s margins and free cash flow generation, therefore making an upgrade to ‘A+’ unlikely in the short term.”
–Credit Suisse First Boston raised its estimates and price target on Ericsson but warned of a wireless infrastructure spending downturn and retained its underperform rating on the company. Barclays Capital raised its price target on the company to $7 from $6 and adjusted its EPS estimates on the company to 80 cents from 79 cents for this year and to 56 cents from 58 cents for next year.
Other
–Credit Suisse First Boston lowered its estimates on Texas Instruments after the company reported fourth-quarter results and weak guidance. New estimates are 23 cents on revenues of $8.1 billion from 55 cents on $9.5 billion for 2009. Barclays Capital raised its estimates on TI to $1.57 from $1.48 for the current year and to 30 cents from 15 cents for next year.
–Barclays Capital lowered its price target on American Tower to $41 from $46.
–Barclays Capital cut its price target on Crown Castle to $26 from $41 on expectations of the cost of borrowing increasing materially as the company looks to refinance debt.
–Barclays Capital lowered its price target on SBA Communications to $24 from $38 on the increased cost of borrowing.
–R.W. Baird lowered its price target on F5 Networks to $22 from $23 on product revenue declines. The firm also lowered its EPS estimates on the company to $1.47 from $1.50 for fiscal year 2009.