The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
- Carrier
- Standard & Poor’s Ratings Services revised its outlook on SunCom Wireless Holdings to positive from negative after it reached an agreement with bondholders to reduce its debt through a debt-for-equity exchange.
- Robert W. Baird lowered its rating on Telephone & Data Systems to neutral from outperform on valuation. It also raised its price target on the company to $61 from $58 and lowered its estimates on subsidiary U.S. Cellular Corp. to $1.73 from $2.12 for 2007. Standard & Poor’s Ratings Services cut its corporate credit rating on TDS to BBB- from BBB after the company missed quarterly report filing deadlines.
- Credit Suisse First Boston cut its rating on Vodafone Group to neutral from outperform.
- Credit Suisse First Boston raised its price target on Qwest Communications International Inc. to $7.50 from $6 after the company reported somewhat weaker-than-expected fourth-quarter results but upbeat 2007 guidance.
- Morgan Stanley downgraded Embarq to equal weight from overweight and trimmed its estimates on the company to reflect guidance. But it raised its price target on the company to $59 from $53. The moves come after Embarq released in-line quarterly results. Prudential Equity Group raised its 2007 estimates on Embarq to EPS of $4.55 from $4.45. Credit Suisse First Boston raised its price target on the company to $55 from $53 and increased its 2007 EPS estimate on the company to $4.57 from $4.54.
Handset and infrastructure vendors
- RBC Capital Markets raised its price target on Nortel Networks from $28 to $32, saying the company is slowly beginning to turn the corner on its financial problems.
- Robert W. Baird lowered its estimates on Alcatel-Lucent after the company reported soft fourth-quarter results. The company now expects EPS of 85 cents rather than 92 cents for 2007 and $1.04 rather than $1.07 for 2008.
Other - RW Baird upgraded Pctel Inc. to outperform with a $12 price target based on a favorable revenue and EPS outlook for 2007. It also raised its estimates on the company to 45 cents on revenues of $97 million from 40 cents on $95 million for 2007.
- RBC Capital Markets raised its price target on Crown Castle International Inc. to $41 from $40 after the company reported slightly better-than-expected results. In addition, it adjusted its EPS estimates on the company to a loss of 73 cents per share rather than a loss of 43 cent for 2007. Lehman Brothers increased its price target on Crown to $45 from $43.
- Prudential Equity Group raised its price target on Broadcom Corp. to $38 from $33 after the company reported slightly better-than-expected fourth-quarter results. Credit Suisse First Boston lowered its estimates on Broadcom to 62 cents per share on revenues of $3.89 billion from 63 cents per share on $3.99 billion, based on lower-than-expected first-quarter guidance.
