Financial ratings wrap-up: Sprint Nextel, Aruba, Comverse and more
August 27 2008 - 5:59 am EDT | Kristen Beckman | RCR Wireless News
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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 Sprint Nextel despite the fact that the carrier made small improvements during the second quarter. The firm removed a $3 billion convertible preferred stock that the company was expected to issue from its model, and as a result CSFB reduced its 2009 EPS estimates to 20 cents from 22 cents.
Handset and infrastructure vendors
--RBC Capital Networks lowered its price target on Aruba Networks to $8 from $9 on multiple compression within its group. The firm, however, said it expects encouraging results from the company.
Other
--R.W. Baird revised its estimates on Comverse Technology on business condition deterioration, which it said it expects to continue into the second half of the year. The firm lowered its EPS estimate on Comverse to $1.05 from $1.48 for 2008.
--Oppenheimer lowered its estimates on Novatel Wireless after the company offered disappointing guidance. New estimates are 27 cents rather than 74 cents for 2008 and 60 cents rather than $1.02 for 2009. Novatel “is clearly still suffering from its earlier execution issues and the recovery is being held back by a product refresh and acceptance delays, the ongoing audit, and the challenging economy,” said Oppenheimer in a research note.”
