Analysts contrast RIM's U.S. slowdown, global growth

TORONTO (Reuters) - Analysts scrambled to update their estimates for BlackBerry maker Research In Motion on Friday, and some cut share price targets despite results that beat estimates and forecasts that were stronger than the market had expected.

RIM's earnings per share, revenue and shipments all exceeded consensus, and the firm issued guidance that also surprised on the upside.

The most notable miss was on net subscriber additions. Analysts also noted further evidence of stagnation in the United States and erosion of the company's corporate base -- a segment that uses the secure email services that were the bedrock of RIM's early successes.

UBS cut its price target to $54 from $65, citing a lack of clarity on how RIM intends to navigate the increasingly competitive smartphone landscape, where the company competes against the likes of Apple and Motorola.

The stock closed at $46.49 on the Nasdaq on Thursday, but rose as much 6 percent in after hours trade on RIM's results.

"As the handset market goes through profound changes, the company's corporate business is at risk and we see current growth and profitability in the consumer market as an unsustainable combination," Pierre Ferragu from Sanford Bernstein said in a note to clients, maintaining a $40 price target and "underperform" rating".

Two Bernstein surveys in August pointed to lessening demand for BlackBerry from corporate IT departments and a lack of excitement among consumers.

But RIM fans argued that international volumes more than made up for softer U.S. sales, which RIM blamed on a slew of competitive devices coming to market early in the quarter.

Competitor launches in the quarter included Apple's iPhone 4 and several high-end devices running Google's Android operating system.

The BlackBerry Torch, a touchscreen device with a slideout keypad that runs a revamped operating system, launched two weeks before the end of the quarter with AT&T in the United States. It will roll out to 75 other carriers worldwide this quarter.

"The Torch came in late and it wasn't a blockbuster and they still pulled out a really strong performance," said Dushan Batrovic from Dundee Securities, who raised his price target to $70 from $65 and maintained a "buy" recommendation.

RIM said around 52 percent of its revenue come from outside the United States, as emerging economies continue to boost sales.

"As with recent prior quarters, growth of international business dwarfed that of U.S. sales," said Wunderlich's Matthew Robison, who held his price target at $67.

(Reporting by Alastair Sharp)