Sector Snap: Handset stocks mostly decline

RIM shares fell $2.11 to $139.86.

On Monday, the stock finished trading up $9.20, or 6.9 percent, at $141.97, after hitting a new high of $143.08 during trading. That day, the company introduced the Bold -its first major new BlackBerry model in more than a year. The device will be sold by carriers starting this summer.

On Tuesday, Citi Investment Research analyst Jim Suva raised his price target for RIM shares to $165 from $140.

Suva, who rates the stock "Buy," said the change came as he increased his estimates for the company based on shipments of the company's Curve smart phone at Sprint and Verizon and on the expectation that the Bold will start shipping internationally during the summer.

Also Tuesday, RBC Capital Markets analyst Mike Abramsky said that at its analyst day on Monday RIM "appeared confident that it can conquer the consumer via innovation, execution and its core strengths."

Abramsky also thinks that there is a place in the growing smart phone market for RIM and iPhone maker Apple Inc.

"In our view, 'RIM vs. Apple' misses the larger opportunity as both should be able take share from incumbent handset players," he said.

He estimates that every 25 basis points of the global handset market that RIM gains hurts Motorola Inc. and Nokia Corp.

Apple shares rose $1.95 to $190.11, while Motorola shares fell 15 cents to $9.75 and American Depositary Shares of Nokia fell 36 cents to $28.24.

Elsewhere in the sector, shares of Treo maker and RIM rival Palm Inc. rose 5 cents to $5.96.