The Globe and Mail reports in its Friday, Oct. 8, edition that Scotia Capital analyst Konark Gupta sees greater upside potential for Canadian Pacific Railway than Canadian National Railway. The Globe's David Leeder writes in the Eye On Equities column that Mr. Gupta rates both rail operators "sector outperform." Mr. Gupta says in a note: "Market expectations have come down due to weaker traffic trends in agriculture (low grain supply), autos (semiconductor shortage) and intermodal (supply chain issues). While volumes are improving gradually and capacity tightness is aiding pricing, we believe Class 1s are likely to be cautious in the near term. We are modestly tweaking our CN estimates, having recently revised our model, and are reducing our CP estimates." Mr. Gupta expects CN to report adjusted earnings per share of $1.40, up 1 per cent year-over-year. His CP estimate is 93 cents, a 13-per-cent rise. However, both sit below consensus expectations. Mr. Gupta adds, "Despite near-term headwinds, we continue to like both Canadian rails for upcoming catalysts, driven by their strategic actions, including CN's renewed focus on margin (plus potential activism) and CP's pending KCS acquisition."