Canadian Stocks Advance, Led by Research In Motion, CN Rail

Sept. 26 (Bloomberg) -- Canadian stocks rose for a fourth day, led by technology companies, after analysts recommended investors buy shares of Research In Motion Ltd. and raised their target prices ahead of the company's results next week.

The maker of the BlackBerry e-mail phones is likely to report another strong quarter and raise its forecast when it reports earnings on Oct. 4th, American Technology Research analyst Rob Sanderson said in a note. He rates the stock ``buy.''

The Standard & Poor's/TSX Composite Index rose 37.35, or 0.3 percent, to 14,034.97 in Toronto. The S&P/TSX, which has gained 1.4 percent in four days, was supported by speculation that the Federal Reserve will cut interest rates again to boost the economy.

Research In Motion ``is a company that continues to see strong growth in all areas,'' said Paul Harris, who helps manage $75 million at Avenue Investment Managements in Toronto. ``Technology stocks have some of the best growth rates among all sectors. Third- quarter earnings will be o.k.''

Research In Motion climbed C$2.33, or 2.4 percent, to a record C$99.64 today. The shares have more than tripled this year on demand for its handsets.

Citigroup analyst Jim Suva rated Research In Motion ``buy'' in new coverage, with a 12-month share-price forecast of C$115.81 ($115). Lehman Bros. raised its share target by 26 percent to the equivalent of C$106.51 ($106). San Francisco-based Sanderson said that he and other analysts will probably raise forecasts again after the results.

Nortel Networks Corp., North America's biggest phone-equipment maker, added 48 cents, or 3 percent, to C$16.42.

A gauge of technology shares rose 2 percent. It has gained 34 percent this year for the best performance among 10 industry groups in the S&P/TSX in 2007. Research in Motion accounts for 69 percent of the sub-index's value.

Industrial Shares

Canadian National Railway Co. gained 97 cents to C$56.90 after it agreed to buy ``the major portion'' of the Elgin, Joliet and Eastern Railway Co. for $300 million (C$301 million).

Bombardier Inc., the world's third-largest maker of commercial aircraft, gained 12 cents to C$5.97 and helped lift a gauge of industrial stocks 1.3 percent. The measure was also boosted by an agreement between General Motors Corp. and the United Auto Workers Union that ended a strike.

Indexes of materials and energy producers fell 0.3 percent and 0.4 percent, respectively, as gold prices fell and oil touched its lowest since Sept. 17, before rising above $80 again.

Barrick Gold, the world's biggest producer of the metal, dropped 31 cents to C$38.90. Smaller rival Goldcorp Inc. slipped 35 cents to C$29.51.

EnCana Corp., Canada's biggest energy company by value, dropped C$1.15 to C$61.05. Suncor Energy Inc., the second-largest oil-sands miner in the world, declined C$1.62 to C$93.54.



Barrick Gold Corp. (ABX CN)
Bombardier Inc. (BBD/B CN)
Canadian National Railway Co. (CNR CN)
EnCana Corp. (ECA CN)
Goldcorp Inc. (G CN)
Nortel Networks Corp. (NT CN)
Research In Motion Ltd.
Suncor Energy Inc. (SU CN)