The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carriers
–FBR Research upgraded Sprint Nextel to outperform from market perform and maintained its $4 price target, reflecting an improved risk/reward trade-off in the near term. The firm said it expects the carrier’s shares to respond favorably to early evidence of an organic turnaround at the company, specifically that it will deliver on guidance of flat sequential gross additions in the fourth quarter compared with a sequential decline for its major competitors. In a separate note, the firm raised its price target on Sprint to $6 from $4. RBC Capital markets raised its price target on the company to $4 from $3. R.W. Baird adjusted its 2009 EPS estimates on the company to a loss of 19 cents rather than a loss of 23 cents. Barclay’s Capital adjusted its 2010 EPS estimates on the carrier to a loss of 6 cents rather than a loss of 13 cents.
–Deutsche Bank lowered its rating on China Mobile to hold from buy on expected competition from China Telecom going forward. The firm also raised its rating on China Telecom to sell from hold, saying evidence suggests the carrier is poised to become the first and most-successful 3G operator in China.
–RBC Capital markets lowered its price target on Rogers Communications to $38 from $41 after the company reported fourth-quarter results. The firm noted, however, that while wireless margins were down due to smartphone subsidies, many positives remain.
–Morgan Stanley downgraded Telephone and Data Systems and subsidiary U.S. Cellular to underweight from equal weight after recent outperformance of the company’s stock along with deteriorating wireless performance and long-term market positioning challenges.
Handset and infrastructure vendors
–Credit Suisse First Boston cut its estimates on Samsung Electronics by 25% for 2009, saying first-quarter checks suggest a stronger quarter than the fourth quarter, but that the pace of recovery is slower than expected.
–Credit Suisse First Boston upgraded Motorola to neutral from underperform and raised its 2010 EPS estimates to 37 cents from 28 cents on its increased confidence in management’s focus on spending reductions. Despite continuing challenges, the firm believes the company’s mobile devices business has bottomed out and there is limited downside from current levels.
–Credit Suisse First Boston cut its estimates on Nokia by 12% due to near-term risks.
–Deutsche Bank raised its rating on Palm to buy from hold and increased its price target to $10 from $6 on potential for the company’s Pre product.
Other
–Barclays Capital lowered its price target on RadioShack to $15 from $16.50 on expectations the company will report in-line fourth-quarter results and offer cautious guidance. The firm also adjusted its EPS estimates on the company to $1.76 from $1.74 for 2009 and to $1.45 from $1.54 for 2010.
