The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Click here for wireless ratings from past weeks from RCR Wireless News.
Carrier
- RBC Capital Markets raised its rating on Dobson Communications to outperform from sector perform and increased its price target to $11 from $10. The changes reflect higher subscriber growth assumptions.
- RBC Capital Markets raised its price target on Alltel Corp. from $70 to $71 based on an increased subscriber forecast.
Handset and infrastructure vendors
- RBC Capital Markets lowered its estimates on Nortel Networks after the vendor reported in-line first-quarter revenues but a larger loss per share than expected. RBC lowered its EPS estimate on Nortel for 2006 to 3 cents from 8 cents. R. W. Baird also lowered its EPs forecast on Nortel, from 5 cents to 4 cents for 2006, and also lowered its revenue estimate for the year to $11.2 billion from $11.3 billion.
- RBC Capital Markets reduced its operating margin assumptions for L.M. Ericsson’s near-term quarter and tempered the rate of margin improvements it expects for the second half of this year.
Other
- CIBC World Markets initiated coverage on Novatel Wireless with a sector perform rating.
- CIBC World Markets lowered estimates on Brightpoint due to near-term challenges in the U.S. market. Specifically, the firm said it believes strength at Verizon and Cingular during April and May, driven by strong demand for the Razr, has dampened demand on the part of Brightpoint’s customers. For 2006, CIBC lowered its EPS estimates to 77 cents from 86 cents and 2007 estimates to 94 cents from 98 cents. It also cut its price target on the company from $29 to $21.
- R.W. Baird raised its revenue estimates on Tekelec for 2006 to $600 million, but it lowered its EPS estimates on the company to 50 cents from 80 cents. It also lowered its price target on Tekelec to $18 from $20. The moves were based on updated financial information provided by the company, but Baird said Tekelec’s forecasts remain unclear.
