The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Handset and infrastructure vendors
CIBC World Markets lowered its price target on Motorola Inc. to $26 from $28 based on concerns about ASPs and margins. In addition, CIBC lowered its estimates on the company to $1.48 from $1.50 for 2007.
Fitch Ratings cut its ratings on Alcatel-Lucent following the merger of the two companies. The firm cut the company’s issuer default rating to BB from BBB- and its senior unsecured debt rating to BB from BBB-. The outlook is stable.
Other
RW Baird lowered its estimates on Comverse Technology Inc. to 79 cents from 81 cents for 2006 after the company reported solid third-quarter results but a decline in backlog.
First Albany Capital lowered its rating on @Road Inc. from strong buy to neutral, saying the company’s acquisition by Trimble is poorly timed and valued.
BMO Capital Markets lowered its estimates on Texas Instruments Inc. after the company lowered its revenue guidance. For 2006, BMO lowered its estimates on TI to $1.85 per share from $1.89 for 2006 and to $1.91 from $2.07. Credit Suisse First Boston also lowered its estimates on Texas Instruments to $1.67 on $14.3 billion in revenues from $1.89 on $15.42 billion for 2007. Its new price target is $40, down from $42. Prudential Equity Group lowered its price target on TI to $35 from $36 and cut its estimates to $1.63 from $1.67 for 2006 and to $1.86 from $2.01 for 2007. RW Baird lowered its price target on the company to $30 and reduced its estimates to $1.62 from $1.66 for 2006 and to $1.48 from $1.67 for 2007. Lehman Bros. lowered its price target on TI to $38 from $39 and cut its estimates to $1.63 from $1.67 for 2006 and to $1.66 from $1.75 for 2007.
First Albany Capital cut its price target and estimates on Atheros Communications Inc., saying the first quarter will present a variety of challenges to the company. Its new price target is $28, down from $32, and its estimates drop to 85 cents per share on revenues of $398 million from 90 cents per share on revenues of $360 million for 2007.
