Stocks are broadly higher across the board today, and the positive momentum is helping Research In Motion Limited (RIMM: sentiment, chart, options) shake off a downgrade from Needham & Co. This morning, analyst Charlie Wolf dropped his rating on the stock from "hold" to "underperform," citing a perceived threat to RIMM's bottom line from Apple's (AAPL) iPhone. Additionally, Wolf cut his 2008 earnings estimates on RIMM from $4.05 to $3.70 per share, and reduced his 2009 forecast from $6.25 to $4.80 per share.

In a note to clients, Wolf said that RIMM previously didn't face any serious competition in the smartphone market. Now, the popularity of the iPhone has changed the landscape, particularly since it appeals to the fickle teenage crowd. "The [iPhone] promises to be a must-have product for teenagers already addicted to their iPods," said Wolf.

Not only does the iPhone have the trendy advantage, but Wolf believes that the iPhone's operating platform is superior to RIMM's offering. He asserted, "Research In Motion has no hope of catching up on the software front, which promises to be the next battleground in the smartphone market."

Despite this negative note, RIMM has been swept up in a bout of broad-based buying pressure. The shares are nearly 3% higher at last check, and a recent pullback has left them perched atop the support of their 50-week moving average. Meanwhile, most analysts remain firmly bullish on the stock. Zacks reports that 72% of brokerage firms following RIMM maintain a "buy" or better rating.