Bombardier, Canadian Natural, Teranet May Rise; Canfor May Fall

By John Kipphoff

Sept. 4 (Bloomberg) -- Bombardier Inc. may rise, based on bids on the Toronto Stock Exchange, after the third-largest maker of commercial aircraft reported earnings that topped analysts' estimates.

Canadian Natural Resources Ltd. may rise, after a two-day slump in energy shares, as oil prices advanced for the first time this week. Teranet Income Fund may jump after a pension fund said it will bid more than C$2 billion ($1.89 billion) for the land registry company. Canfor Corp. may fall on a downgrade from Raymond James & Associates.

The Standard & Poor's/TSX Composite Index fell 1.2 percent to 13,137.72 yesterday in Toronto.

Canada's main equity benchmark, which derives about two- fifths of its value from energy and materials stocks, has dropped 4.6 percent in two sessions as commodity prices slumped, for its steepest two-day decline since January. Losses were limited yesterday as financial shares rose.

Bombardier may gain 10 cents to C$8.50, bids already submitted in Toronto showed.

The Montreal-based maker of the Challenger business jets and Q400 turboprops reported second-quarter net income of $246 million (C$261.1 million), or 14 cents a share, compared with a year-earlier loss of $71 million. Analysts forecast profit of 11 cents a share, the average of 11 estimates compiled by Bloomberg. Bombardier shares trading in Frankfurt rose 3.6 percent today.

Crude oil rose for the first time in five days as Hurricane Ike gained force in the Atlantic, causing concern that U.S. oil supplies may be disrupted. Copper, gold, wheat and soybean prices also advanced, sending the Reuter/Jefferies CRB Index of 19 commodities to its first gain in five days.

Energy Companies

Canadian Natural, the nation's fourth-largest energy company by market value, may climb C$2.49 to C$84.47, according to bids. Suncor Energy Inc., the world's second-largest oil- sands mining company, may gain 31 cents to C$53.85, bids indicated, rebounding from its worst two-day drop in at least 15 years.

Potash Corp. of Saskatchewan Inc. , the world's largest maker of the fertilizer, may advance C$3.72 to C$168.25, bids suggested. Goldcorp Inc., the second-largest bullion producer by market value, may add 71 cents to C$32.52, based on bids.

Teranet Income may climb C$1.43 to C$10.79, based on bids. Borealis Infrastructure Management, a unit of the Ontario Municipal Employees Retirement System, plans to offer C$11 a share in cash, the Toronto-based company said today. That's 18 percent higher than Teranet's closing price in Toronto Stock Exchange trading yesterday.

Canfor may drop 24 cents to C$10.82, according to bids. Canada's second-largest lumber producer was downgraded to ``underperform'' from ``market perform'' by Daryl Swetlishoff at Raymond James. The Vancouver-based analyst raised his six-month to 12-month share-price forecast to C$9 from C$8.

U.S. stock-index futures fell as oil's advance dimmed the earnings outlook for airlines and automakers and investors speculated a report on service industries will show the economic slowdown is broadening.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.