Subject: [NEXTEL-1] RESEARCH ALERT - SG Cowen starts coverage of wireless cos

From: Marcel <[email-masked]>
Date: Thu, 13 Mar 2003 20:51:43 -0500

RESEARCH ALERT - SG Cowen starts coverage of wireless cos

3/13/2003 2:06:37 PM

CHICAGO, March 13 (Reuters) - SG Cowen on Thursday started coverage of five wireless
telephone companies and said 2003 will be a watershed year in which winning companies will
distinguish themselves through customer retention, cost control and free cash flow
generation.

Analyst Thomas Watts said in a research note he
started coverage of its top pick, AT&T Wireless
Services Inc. (AWE) , with a "strong buy" rating.
He expects the third-largest wireless telephone
company to post earnings of 9 cents a share on
revenue of $16.7 billion in 2003.

"We believe that AT&T Wireless's consistent focus
on the industry fundamentals ... differentiate it from
its wireless competitors and should enable free
cash flow to turn positive in 2003," he said.

Shares of AT&T Wireless rose 13 cents or 2.4
percent to $5.64 on the New York Stock Exchange
in midday trading.

Watts started Nextel Communications Inc. (NXTL)
with an "outperform" rating and set a proforma
earnings estimate of 81 cents a share on revenue of
$10.1 billion in 2003.

"While Nextel faces a number of challenges in the
coming year, including high leverage, new
competition, and the need to enter new markets, we
believe concerns over these challenges are
overblown, and expect exceptional cash flow to
drive the company's stock price," he said.

Shares of Nextel were up 1.6 percent at $11.91 on
the Nasdaq.

Sprint PCS Group (PCS) , the nation's fourth-largest
wireless operator, was started with a "strong buy"
rating, a 2003 revenue target of $12.8 billion and a
2003 proforma loss estimate of 42 cents a share.

"Sprint PCS represents the turnaround story of the
wireless sector for the coming year," Watts said.

Shares of Sprint PCS rose 15 cents or 4.2 percent
to $3.74 on the New York Stock Exchange.

SG Cowen also started coverage of Triton PCS
Holdings Inc. (TPC) with an "underperform" rating and U.S. Cellular Corp. (USM) with a
"market perform" rating.
Shares of Triton, an affiliate of AT&T Wireless, rose 2 cents to $2.06 on the New York
Stock Exchange while U.S. Cellular rose a penny to $21.78 on the American Stock Exchange.

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