Weekly wireless ratings wrap-up

Following is a list of wireless companies that received ratings changes by financial and analyst firms this week.

• Merrill Lynch upgraded its ratings on several semiconductor companies. Among its upgrades were Intersil from sell to neutral and its rating on Broadcom from neutral to buy. Merrill Lynch said it expects most companies in its semiconductor sector to achieve first-quarter estimates, but it is wary of second-quarter revenue growth due to reduced bookings growth and backlog coverage.

   

• Marquis Investment Research upgraded its rating on BellSouth from hold to buy, citing good revenue growth prospects primarily driven by its wireless exposure. The company estimated BellSouth’s percentage of business from wireless at 36 percent, compared with Verizon at 27 percent and SBC at 29 percent. BellSouth also received an upgrade from equal weight to overweight from Lehman Brothers.

   

• Standard & Poor’s placed Leap Wireless International Inc. on CreditWatch with negative implications following the failure of the company to file its 2004 10-K report by its March 31 deadline. Leap attributed the missed deadline to a review of lease-accounting practices. The company expects to file its annual report by April 15.

   

• Merrill Lynch upgraded its rating for U.S. Cellular from neutral to buy. The firm pointed to solid underlying U.S. wireless growth potential, as well as the carrier’s attractive valuation. Merrill Lynch also downgraded rural carrier CenturyTel from buy to neutral.

   

• LCC International Inc. was downgraded by First Albany Capital on news the company’s chief executive officer, Tom Faulders, and its chief financial officer, Graham Perkins, have both resigned.