UPDATE: Paradigm Capital Downgrades Research In Motion to Hold on Service Model Changes

Paradigm Capital reduced its rating on Research In Motion RIMM from Buy to Hold but raised its price target from $14 to $14.50. Paradigm Capital noted, "While we are pleased to see the company execute on its operational restructuring plan (as evidenced by the better-than-expected earnings), we believe the uncertainty (i.e., lack of information) about the potential impact of the transition of the company's Services revenue model could act as an overhang on the stock, particularly given that we believe it represents RIM's most profitable revenue line. While we think the impact of these changes to the Services revenue could be gradual (i.e., it would be based on BB10 adoption) and that lower Services ARPU's could be offset by further cost efficiencies, it does add another layer of uncertainty that could put a cap on RIM's recent stock price momentum." Research In Motion closed at $14.12 on Thursday.