Wednesday, September 5, 2007

Financial ratings wrap-up: MetroPCS, Motorola, Aruba Networks and more

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.


--R.W. Baird adjusted its third- and fourth-quarter estimates on MetroPCS Communications Inc. to reflect a delay in the launch of the company’s Los Angeles market. New estimates are 49 cents rather than 45 cents for the third quarter and 40 cents rather than 46 cents for the fourth quarter.

Handset and infrastructure vendors

--Lehman Brothers upgraded Motorola Inc. to overweight from equal weight and increased its price target to $20 from $18.50, saying the company is showing signs of a recovery in its handset business. RBC Capital Markets raised its price target on the company to $20 from $19.

--Lehman Brothers lowered its price target on Research In Motion Ltd. to $84 from $250 and also lowered its earnings estimates on the company to reflect the company’s 3 for 1 stock split.

--Goldman Sachs raised its price target on Aruba Networks Inc. to $20 from $18 after the company reported solid fourth quarter results. Lehman Brothers raised its estimates on the company for fiscal 2007 to a loss of 3 cents rather than a loss of 7 cents and to a return of 21 cents rather than 20 cents for 2008.


--Standard & Poor’s Ratings Services assigned a BB+ rating to American Tower Corp.’s $500 million senior term loan facility. Proceeds are expected to be used for refinancing debt, working capital and general corporate purposes.

--R.W. Baird raised its price target on OmniVision Technologies Inc. to $14 from $12, saying the company has rebounded strongly since last year’s fourth quarter. Baird, however, noted the company’s outlook is unstable

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