Financial ratings wrap-up: Sprint Nextel, Aruba, American Tower and more

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
–Credit Suisse First Boston lowered its estimates on Leap Wireless to a loss of $1.03 from breakeven for 2008 due to a reduction in EBITDA and greater book taxes. It increased is 2009 EPS estimates to a loss of 64 cents from a loss of $1.32.
–Credit Suisse First Boston raised its price target on Sprint Nextel to $12 from $11 after the carrier released solid first-quarter results. The firm also bumped its EPS estimates on Sprint Nextel to breakeven on revenues of $7.3 billion from a loss of 2 cents on revenues of $7.5 billion for 2008. Its 2009 EPS estimate changes to a loss of 2 cents from a loss of 8 cents.
–Standard & Poor’s Ratings Services lowered its rating on Indonesian wireless operator PT Mobile-8 Telecom to B- from B and placed it on CreditWatch with negative implications. “These rating actions follow the release of the company’s first quarter results, which were substantially below expectations,” said Standard & Poor’s credit analyst Manuel Guerena. “These results add to the company’s network expansion setback caused by delivery delays from equipment providers, also the reason behind 2007 capex amounting to only 40% of its original $150 million plan. As competitors invested heavily to expand coverage, Mobile-8’s market share declined. We understand that the company is looking to resume its network expansion in the second half of 2008.”
–Standard & Poor’s Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Deutsche Telekcom AG to BBB+ from A-. The ratings have been removed from CreditWatch with negative implications, where they were placed in March. The outlook is stable. The rating action follows final confirmation that DT will purchase a 25%-plus-one-share stake in Greek telecommunications provider Hellenic Telecommunications Organization S.A.
Handset and infrastructure vendors
–Deutsche Bank lowered its rating on LG Electronics to hold from buy, saying it believes share performance may slow going forward.
–RBC Capital Markets raised its price target on Aruba Networks to $9 from $7 and raised its revenue estimate for 2008 to $43.5 million from $41 million. JP Morgan raised its 2008 estimates on the company, saying the near-term outlook for the company has remained stable.
Other
–Lehman Brothers lowered its 2008 EPS estimate on American Tower to 13 cents from 19 cents but raised its 2009 EPS estimate to 47 cents from 31 cents. The adjustment comes after American Tower reported in-line first-quarter results.
–Oppenheimer raised its price target on Skyworks Solutions to $11 from $9.50 on strong near-term 3G socket share gains with Korean companies as well as increasing market share at RIM.