AT&T Wireless downgraded to "market perform"

12/16/03 - Raymond James

NEW YORK, December 16 (New Ratings) — Analyst Ric Prentiss of Raymond James downgrades AT&T Wireless (AWE) from “outperform” to “market perform.”

Shares of AT&T Wireless, a US-based wireless communications services provider, are currently trading at $7.13.

According to Raymond James’ research note published yesterday, AT&T Wireless is significantly exposed to potential customer losses due to the implementation of wireless local number portability in the near term. The analyst mentions that the company is still in the early stages of technology migration, as compared to its competitors in the US wireless services sector. Raymond James expects the recent disruptions in AT&T Wireless’ customer care and internal activation systems to further weaken its competitive position in the market.

AT&T Wireless’ net subscriber additions are likely to decline through 4Q03 and 2004, the analyst says. Raymond James expects the company’s reduced net additions and high cash expenses to considerably offset its margins expansion potential in the near term.

The EPS estimates for 2003 and 2004 are $1.75 and $1.78, respectively.

Raymond James downgrades AT&T Wireless from “outperform” to “market perform.”