Handset stocks rose Tuesday, with Research In Motion Ltd. inching higher as an analyst said the BlackBerry maker's integration of e-mail service, enterprise software and handsets make it an "unrivaled leader" in the enterprise e-mail market.

RIM shares rose $3.17, or 2.7 percent, to $118.83 in afternoon trading.

In a client note, Lehman Brothers analyst Jeffrey Kvaal said the success of the company's integrated model has led to "significant barriers to entry" in the enterprise e-mail market and enabled the smart phone maker to snag the majority of the market.

"None of its competitors have a material presence in this market," he wrote.

The analyst rates the stock "Overweight" with a $165 price target.

Meanwhile, shares of handset maker Motorola Inc. rose 24 cents, or 3.4 percent, to $7.34.

In a client note, Morgan Keegan & Co. analyst Tavis McCourt said that while he had predicted second-quarter handset shipments of 28 million from Motorola, market checks and data indicate "downside is far more likely than upside."

"On the bright side, sell-through will likely exceed sell-in volumes for another quarter, which should give Motorola ample room for channel build once gaps in its handset portfolio are addressed (late 2008/early 2009)," he said.

American Depositary Shares of Nokia Corp., the world's leading handset maker, rose 19 cents to $24.76.

Elsewhere in the sector, shares of iPhone maker Apple Inc. rose $1.38 to $176.54.

Lehman Brothers analyst Benjamin Reitzes said in a note to investors that excitement surrounding the Friday launch of an updated iPhone could impact the company's shares in the next few weeks.

The new version of the product will be cheaper than the older version, work on faster wireless networks and support satellite navigation.

Reitzes said a line of shoppers waiting for the device has formed outside Apple's Fifth Avenue store in New York City. Consumers also lined up last June in advance of the release of the first version of the device.

"We expect the new iPhone to be met with significant demand and wouldn't be surprised to see demand outstrip supply in most regions given a strong reception and limited initial supply," he said.

Elsewhere, shares of Treo smart phone maker Palm Inc. rose a penny to $5.56.

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