Canaccord Adams cuts Apple, RIM, Nokia

WASHINGTON, USA: Canaccord Adams downgraded shares of cellphone makers Apple, Research In Motion and Nokia on valuation and some softness in U.S. consumer spending after a very healthy bounce in early spring.

"Our checks with large retailers and semiconductor companies show that the month of June could be flat to slightly down from May vs. prior expectations calling for growth," the investment dealer wrote in a note to clients.

"We see increasing evidence that the U.S. consumer is beginning to retrench again."

The brokerage cut Research In Motion to "hold" from "buy" and said much of the upside to the company's results and outlook is already reflected in the share price, which has gained over 140 per cent since March. The brokerage kept its $95 price target on the stock.

Canaccord Adams cut Apple to "hold" from "buy" and said it sees the possibility of a modest share price correction over the summer. It maintained its $150 price target on Apple stock.

The brokerage lowered Nokia to "sell" from "hold" and said the company is currently facing severe competition in the high-end smartphone segment from Research In Motion, Apple and Android-based devices from multiple vendors.

"On the flip side, we do believe that Nokia will be able to maintain its market share in the low-end segment," the brokerage, which kept its $14 price target on Nokia stock, said.