UPDATE: BMO Capital Markets Downgrades Research In Motion Limited to Underperform, Lowers PT

In a report published Friday, BMO Capital Markets downgraded its rating on Research In Motion Limited RIMM from Market Perform to Underperform, and lowered its price target from $12.00 to $9.00. BMO Capital Markets noted, “We are growing more cautious on RIM as we leave CES and approach the launch of BB10 devices later this month. While BB10 should be a meaningful improvement, we are not expecting the new phones to stem market share losses. We expect further pressure with BB7 products as low-end Android products ramp. On the Services side, we are concerned about both subscribers and ARPU. We are modeling one million fewer BB subs each quarter, which may be too optimistic. We also believe the change in Service business model will lead to a more aggressive ARPU drop.” Research In Motion Limited closed on Thursday at $11.92.