The Globe and Mail reports in its Friday edition that Desjardins analyst Benoit Poirier, heading into the first quarter earnings season, is confident that both Canadian National Railway and Canadian Pacific Kansas City will benefit from significant operating leverage and achieve their annual guidance. The Globe's David Leeder writes in the Eye On Equities column that Mr. Poirier notes that volumes are coming in stronger than initial expectations, issues related to the weather and stock-based compensation are one-time in nature, and both rails are facing much easier year-over-year comparisons in the rest of the year. According to Mr. Poirier, the first quarter was the toughest test by far. Despite the first quarter reductions, Mr. Poirier raised his share targets for both companies, maintaining "buy" recommendations. His CN target increased to $195 from $189 and CPKC to $130 from $118. Analysts on average target CN and CPKC shares at $180.15 and $123.89. Mr. Poirier says in a note: "We do not expect either railroad to increase guidance with first quarter results given the potential labour issues on the horizon. While we are neutral between the two rails longer-term, we prefer CN's setup over the coming quarters."