The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carriers
–R.W. Baird lowered its estimates on Verizon Communications to $2.50 from $2.60 for 2009 on wireline margin pressure. The firm noted the company’s wireless results were solid. FBR Capital Markets lowered its price target on the company to $37 from $41 but raised its 2009 EPS estimate on the company to $2.64 from $2.14.
–Morgan Stanley lowered its price target on AT&T to $32 from $35 after the carrier reported mixed fourth-quarter results that were in-line with expectations. Guidance for 2009, however, was lower than expected. R. W. Baird lowered its 2009 EPS estimate on AT&T from $2.55 to $2.36. Barclays Capital lowered its EPS estimates on the company to $2.16 from $2.81 for 2009 and to $1.96 from $2.86 for 2010. RBC Capital Markets lowered its price target on AT&T to $28 from $31.
–RBC Capital Markets lowered its price target on NTELOS to $25 from $30 and cut its rating from outperform to sector perform on the competitive threat from Leap Wireless as it builds out in the company’s markets. FBR Capital markets lowered its price target on the company to $31 from $36.
–Barclays Capital raised its 2009 EPS estimates on Telephone & Data Systems to $2.59 from $2.03 but lowered its 2010 EPS estimate to $2.16 from $2.61. The firm also raised its 2009 EPS on TDS subsidiary US Cellular Corp. to $3.07 from $2.83 but lowered its 2010 EPS estimate to $2.85 from $3.57. The changes were made as a result of expected impacts to roaming revenues as a result of Verizon’s acquisition of Alltel.
Handset and infrastructure vendors
–Oppenheimer reiterated its outperform rating but cut its price target on Alvarion to $5 from $7 after the company pre-announced a break-even fourth quarter.
Other
–Credit Suisse First Boston lowered its estimates on Broadcom Corp. on an in-line fourth quarter but weaker first-quarter outlook and margins. The company’s new estimates on Broadcom are 20 cents on revenues of $3.48 billion from 66 cents on $3.48 billion. Barclays Capital raised its estimates on Broadcom to $1.60 from $1.54 for 2009 but lowered its 2010 EPS estimate to 30 cents from 63 cents. Deutsche Bank lowered its price target on Broadcom to $14 from $15.
–R.W. Baird lowered its estimates on Plantronics after the company offered guidance well below expectations. New EPS estimates are 54 cents rather than 84 cents for 2009 and 11 cents rather than 93 cents for 2010. The firm noted weakness in both office and Bluetooth product lines.
–R. W. Baird raised its 2010 EPS estimates on Tellabs after the company reported in-line quarterly results. The company’s new 2010 estimate is 17 cents rather than 9 cents.
