Kaufman Bros. Downgrades Research In Motion (RIMM) to Hold

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Kaufman Bros. downgraded Research In Motion (NASDAQ: RIMM) from Buy to Hold.



The firm cited:

• First, product transitions are difficult and we are concerned that the adoption of BlackBerry 6 and QXM operating ystems could be more difficult than expected with product delays and/or impact to financials. Many app developers have already shown lukewarm support for BlackBerry OS and to introduce yet another OS for its PlayBook with QXM could cause some to give up
  
• Second, we are picking up strong indications from our supply chain checks that Android and iPhone are looking to extend their platforms into mid-range and low-end smart phones where RIMM currently enjoys success with its Curve and Bold product families, particularly in international markets.
  
• Third, we believe RIMM's higher risk profile cannot be underestimated with major product transitions and increasing competition in its core markets.

The firm notes that shares have outperformed recently, "up 32% since August 31 compared to 22% for NASDAQ"

Shares of Research In Motion closed at $56.50 yesterday, with a 52 week range of $42.53-$76.95.

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