The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
–Lehman Brothers lowered its rating on Leap Wireless to equal weight from overweight and cut its price target on the company to $43 from $85.
–Morgan Stanley cut its price target on Sprint Nextel to $15 from $16, saying it appears there is no turnaround in sight for the carrier. The firm also cut its revenue estimates on Sprint Nextel to $39.2 billion from $40.7 billion for 2008.
–Morgan Stanley lowered its estimates on MetroPCS to reflect guidance issued by the carrier after it released strong third-quarter results. The firm said it now expects 2008 EBITDA of $807 million, down from $846 million. It also lowered its subscriber estimates to 1.42 million from 1.47 million. R.W. Baird raised its EPS estimates on the company to 55 cents from 49 cents for 2007 and to 45 cents from 40 cents for 2008. Lehman Brothers lowered its price target on the company to $25 from $42.
–Lehman Brothers upgraded Embarq to equal weight from underweight on a favorable risk/reward proposition for the company’s stock.
Handset and infrastructure vendors
–RBC Capital Markets lowered its price target on L.M. Ericsson to $33 from $36.
Other
–Standard & Poor’s Ratings Services cut its corporate credit rating on Freescale Semiconductor to B+ from BB- and removed it from CreditWatch where it was placed with negative implications in September. The outlook is negative, said S&P. “The action reflects the company’s depressed revenues and cash flows, resulting in debt leverage well above earlier expectations, and limited prospects for material near-term improvement,” said the company.
–Credit Suisse First Boston initiated coverage on Broadcom Corp. with a neutral rating and a $35 price target. Previously CSFB rated Broadcom at underperform with a $22 price target.
–Goldman Sachs increased its estimates on Starent Networks on stronger-than-expected momentum. New estimates are 32 cents on revenues of $138 million from 28 cents on revenues of $130.2 million for 2007 and 49 cents on $193.2 million from 39 cents on $175.8 million for 2008. Lehman Brothers upgraded the company to overweight from equal weight and bumped its price target on the company to $24 from $20.
–Goldman Sachs lowered its 2008 EPS estimate on Qualcomm Inc. to $2.04 from $2.10 to reflect updated guidance.
