Goldman Sachs analyst George Tong has maintained their neutral stance on TRI stock, giving a Hold rating today.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding Thomson Reuters’s recent performance and future prospects. The company demonstrated a strong fourth-quarter performance, surpassing expectations on revenue and earnings. This positive momentum is supported by increased client engagement in key business segments such as Legal, Corporates, and Tax & Accounting, which is partly driven by strategic investments in new products that leverage generative AI technologies. Thomson Reuters’s commitment to innovation and a robust product pipeline, along with the added growth from recent strategic acquisitions, positions the company for an escalation in organic revenue growth, expected to shift from 7% in 2023 to high-single digits in the following years.
Despite the optimistic growth trajectory, there are immediate challenges that led to the Hold rating. The company’s reinvestment activities are anticipated to create pressure on near-term margins, and the integration of recent acquisitions may further dilute margins in the short run. Although Thomson Reuters has laid out a financial framework projecting solid organic revenue growth through 2026, these margin concerns, coupled with the current reflection of the company’s fundamentals in its market valuation, suggest a balanced outlook. Consequently, the company’s stock is perceived to be appropriately priced at the moment, leading to a neutral stance in the recommendation.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $159.00 price target.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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:
