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 lowered its rating on Verizon Communications to sector perform from outperform on valuation.
Handset and infrastructure vendors
- BMO Capital Markets raised its estimates on Research In Motion Ltd. after the company reported strong quarterly results and higher-than-expected guidance. BMO raised its EPS estimate on the company for FY2007 to $3.40 from $3.07 and for FY2008 to $4.40 from $3.83. It also raised its price target on the company to $110 from $96. RBC Capital Markets raised its estimates on the company to $3.39 from $3.05 for 2007 and to $4.90 from $3.95 for 2008. Goldman Sachs raised its price target on the company to $125 from $110. Credit Suisse First Boston raised its price target on RIM to $65 from $60 and increased its estimates to $3.18 from $2.90 for 2007 and to $3.37 from $3.18 for 2008. Lehman Bros. raised its price target on RIM to $103 from $94 and increased its 2008 estimates on the company to $4.10 on $3.7 billion from $3.85 on $3.5 billion in revenues.
Other
- CIBC World Markets raised its estimates on Novatel Wireless Inc. following the company’s release of positive preliminary results. For 2006, the firm expects Novatel to report revenues of $204.3 million, up from $200.8 million. Its 2006 EPS estimate of 16 cents remains unchanged. For 2007, CIBC predicts the company will report earnings of 49 cents per share on revenues of $255.2 million, up from earnings of 48 cents per share on revenues of $248.6 million.
- RW Baird raised its rating on Lightbridge Inc. to outperform from neutral after the company announced plans to exit its telecom business after it lost the business of its largest customer, Sprint Nextel Corp. RW Baird said the company’s financial results initially will be impacted negatively, but that its new position as an e-commerce pure-play will ultimately be positive.
- RBC Capital Markets raised its price target on Openwave Systems Inc. to $10 from $7 on reduced regulatory risk, noting the company’s option impact may be less than feared.
- First Albany Capital adjusted its estimates on Wireless Facilities Inc. to reflect its purchase of Madison Research Corp. The firm now expects WFI’s EPS for 2006 to be 3 cents on revenues of $361.1 million rather than 2 cents on revenues of $355.1 million.
- Credit Suisse First Boston upgraded RF Micro Devices from neutral to outperform on higher-than-expected December quarter growth, share and revenue gains at Motorola Inc. and 2007 ramp-up of transceivers at Nokia Corp. CSFB also raised its price target and estimates on the company. The new price target is $9, up from $6.40. For FY08, CSFB expects the company to report 39 cents on $1.12 billion, up from previous estimates of 32 cents on $1.07 billion in revenues.
- BMO Capital Markets upgraded Skyworks Solutions from underperform to market perform after the company announced plans to shut down its baseband business in an effort to improve profitability. BMO also raised its FY07 estimates on the company to 57 cents from 25 cents and its price target to $6.50 from $3.50. Credit Suisse First Boston upgraded Skyworks to neutral from underperform and raised its price target on the company to $9.50 from $4.50. Pacific Growth Equities upgraded the company to buy from neutral on the news. CIBC World Markets raised its 2007 estimates on the company to 55 cents on revenues of $829.3 million from 28 cents on revenues of $817.5 million. The firm also raised its price target on Skyworks to $9 from $7.
- Friedman, Billings, Ramsey lowered its price target on Marvell Technology Group Ltd. to $19 from $23 after the company pre-announced third-quarter results that were lower than expected. BMO Capital Markets lowered its estimates on the company to 70 cents from 82 cents for FY07 and to 83 cents from 92 cents for FY08. BMO also lowered its price target on the company to $21 from $23.
- R.W. Baird raised its estimates on NeuStar Inc. to $1.16 from $1.02 after lowering its estimates just two weeks ago based on lower pricing associated with the company’s number portability contract extension. The analyst firm said it raised its estimates on better-than-expected results from NeuStar’s UltraDNS acquisition and strength in common short codes that could offset the pricing pressure.
