Canaccord Genuity analyst Aravinda Galappatthige assigned a Hold rating on Thomson Reuters (TRI – Research Report) today and set a price target of $147.00.
Aravinda Galappatthige has given his Hold rating due to a combination of factors surrounding Thomson Reuters’s performance and projections. The company’s recent financial results showed adjusted EBITDA and EPS that were better than expected, with particularly strong organic growth in its key segments, known as the Big 3. However, while Thomson Reuters issued 2024 guidance aligning with previous expectations in terms of revenue growth and EBITDA margins, the projections did not significantly exceed prior estimates that might suggest an upward potential for the stock.
The forecasted acceleration in organic revenue growth for 2025-2026 and the expected expansion in EBITDA margins, as well as the projected increase in free cash flow, provide a positive outlook. Despite these promising indicators, the actual reported revenues for the recent quarter were slightly below analyst expectations, and the decline in the Global Print segment is a cause for concern. This balanced view of strengths and areas of caution likely informed Galappatthige’s decision to rate the stock as a Hold, suggesting that investors maintain their current positions until more compelling evidence of growth potential or risks emerge.
Galappatthige covers the Communication Services sector, focusing on stocks such as Rogers Communication, Cineplex, and BCE. According to TipRanks, Galappatthige has an average return of -1.7% and a 46.23% success rate on recommended stocks.
In another report released on February 5, RBC Capital also maintained a Hold rating on the stock with a $149.00 price target.
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Thomson Reuters (TRI) Company Description:
Thomson Reuters Corporation is a multinational media conglomerate which engages in providing news and business information services to professionals. It offers value-added information and technology to users in the fields of accounting, financial services, law, tax, corporate training and assessment, reference information, higher education, scientific research and healthcare.
Read More on TRI:
- Thomson Reuters Reports Fourth-Quarter and Full-Year 2023 Results
- Is TRI a Buy, Before Earnings?
- JPMorgan business/info services analysts hold analyst/industry conference call
- Thomson Reuters price target raised to $149 from $133 at RBC Capital
- Thomson Reuters price target raised to $147 from $129 at Canaccord
