Research in Motion Downgraded by Longtime Bull

| About: BlackBerry Ltd. (BBRY)

Peter Misek, global technology strategist at Canaccord Adams, lowered his recommendation on BlackBerry maker Research In Motion Ltd. (RIMM) from “buy” to “hold” and is cutting his price target on the company from US$145 to US$110. The downgrade is a first in recent memory for Mr. Misek, who has long been one of RIM’s staunchest supporters on Bay Street. He had maintained a “buy” rating on RIM since September, 2005.

“This is still the best-managed technology company and still a great story, just not for the next six months or so,” he said in a research note. “It’s really being driven by what we think are some factors outside of RIM’s control, the biggest one being the [U.S.] economy.”

Mr. Misek says a perfect storm comprised of three factors will hurt RIM’s stock performance over the next six to nine months.

“First, the U.S. recession will lead to lower consumer spending and probably elongated device upgrade cycles for RIM as enterprises will take a wait-and-see approach,” he said.

More importantly, Mr. Misek says RIM’s much-anticipated 3G device will be delayed until the middle of the current calender year as a result of a number of production issues that have yet to be fixed.