Financial ratings wrap-up: Leap, Nortel, Powerwave 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

--Morgan Stanley raised its price target on Leap Wireless International to $94 from $73 due to increased subscriber growth and ARPU expansion. Credit Suisse First Boston upped its price target on the carrier to $95 from $76 and adjusted its estimates to EPS of 38 cents from a loss of 5 cents for 2007 and to 58 cents from 90 cents for 2008 to reflect guidance. Prudential Equity Group raised its 2007 estimates on Leap to 35 cents from 15 cents and its 2008 estimate to $2 from $1.75.

Handset and infrastructure vendors

--Credit Suisse First Boston upgraded LG Electronicsto outperform from neutral and raised its price target, saying the company’s handset business is churning out strong earnings.

--RBC Capital Markets lowered its price target on Nortel Networks to $30 from $32 on concerns about the second half of 2007. Prudential Equity Group raised its estimates on Nortel to 74 cents from 17 cents for 2007 and to $1.52 from $1.23 for 2008. CIBC World Markets raised its estimates to revenues of $11.38 billion from $11.42 billion for 2007 and maintained its 2007 EPS estimate on the company. For 2008 it expects revenues of $12.05 billion from $12.4 billion, with EPS remaining at $1.63.

Other

--Credit Suisse First Boston downgraded RadioShack to neutral from outperform to reflect valuation.

--RW Baird raised its revenue estimate on Powerwave Technologies Inc. after the company reported first-quarter results ahead of estimates but higher operating expenditures. New estimates are $766 million, up from $750 million for 2007, and $817 million, up from $808 million, for 2008. Credit Suisse First Boston raised its 2008 revenue estimate on the company to $1 billion from $925 million and lowered its 2007 EPS estimate to a loss of 37 cents from a loss of 22 cents. Goldman Sachs raised its 2007 estimate on Powerwave to $765 million from $743 million but lowered it 2007 EPS estimate to a loss of 37 cents from a loss of 20 cents. First Albany Capital adjusted its estimates on the company to a loss of 46 cents on revenues of $735.1 million for 2007, down from a loss of 31 cents on revenues of $725.6 million, and to EPS of 3 cents on revenues of $835.4 million from EPS of 6 cents on revenues of $834.4 million for 2008. CIBC World Markets adjusted its estimates on the company to $762.2 million and a loss of 48 cents per share from $738.9 million and a loss of 52 cents per share for 2007; and to $860.6 million and a loss of 12 cents per share from $847.2 million and a loss of 15 cents per share for 2008.

--RW Baird slightly lowered its EPS estimates on NeuStar Inc. after the company reported solid first-quarter results, although questions surround its mobile IM business. New estimates are $1.30 for 2007, down from $1.31, and $1.62 for 2008, down from $1.65.

--CIBC World Markets adjusted its estimates on Brightpoint after the company reported mixed quarterly results. New estimates are EPS of 68 cents on revenues of $2.18 billion for 2007 from EPS of 73 cents on revenues of $2.65 million. The firm’s 2008 estimates go to 90 cents on sales of $3.04 billion from 95 cents on $2.97 billion.

--RBC Capital Markets raised its price target on SBA Communications to $36 from $35 on strong first-quarter results.

--First Albany Capital lowered its estimates on InterDigital Communications Corp. to 80 cents from 90 cents for 2007, but raised its revenue estimates to $227.4 million from $220.1 million for 2007 and to $228.9 million from $226.1 million for 2008.

--Goldman Sachs initiated coverage on Aruba Networks Inc. with a $16.50 price target and a positive outlook. RBC Capital Markets also initiated coverage on Aruba, with a sector perform rating and a $16 price target.

--RBC Capital Markets raised its price target on American Tower Corp. to $46 from $45 on good first quarter results.