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Investing.com - BMO Capital raised its price target on Thomson Reuters (TSX:TRI) (NASDAQ:TRI) stock to C$308 from C$280 on Wednesday, while maintaining an Outperform rating. According to InvestingPro data, the company, currently valued at $95.25 billion, is trading above its Fair Value.
The price target increase comes as Thomson Reuters stock has gained approximately 6% this week on potential Nasdaq 100 inclusion, according to BMO Capital. The stock has shown impressive momentum, with a 32% year-to-date return and maintaining a historically low volatility profile with a beta of 0.43.
The firm cited Thomson Reuters’ superior fundamentals relative to peers in the Legal and Tax & Accounting segments as key factors supporting the higher valuation.
BMO Capital introduced 2027 estimates for the company, projecting continued high-single-digit revenue growth and margin expansion to over 40%.
The firm believes Thomson Reuters’ multiple expansion is supported by industry growth momentum, stable end markets, an exceptional balance sheet position, GenAI product advantage, and consistent execution.
In other recent news, Thomson Reuters reported a strong start to 2025, with a 6% organic revenue increase in the first quarter, driven by its legal, corporate, and tax & accounting divisions. The company also saw its adjusted earnings per share rise slightly to $1.12 from $1.11 year-over-year and reaffirmed its full-year 2025 organic revenue growth guidance of 7-7.5%. Barclays (LON:BARC) raised its stock target for Thomson Reuters to $210, maintaining an Overweight rating, following the company’s solid quarter. Meanwhile, BMO Capital increased its price target to $308, citing strong fundamentals and industry growth momentum.
Thomson Reuters has filed a Form 6-K with the SEC, providing investors with essential financial information and management’s perspective on the company’s performance. The filing includes unaudited consolidated financial statements and certifications by the company’s CEO and CFO. Barclays noted the company’s robust recurring revenue growth and strong profit margins, despite a slight decline in reported revenue due to product sunsets and divestitures. The company also reported an acceleration to 9% growth in its government contracts segment.
Furthermore, Thomson Reuters has been integrating GenAI-enabled products, which now make up 20% of its total mix, up from 18% in the previous quarter. The company’s focus on AI and innovation, including the launch of the Co-Counsel AI assistant, has significantly contributed to its growth. Analysts from BMO Capital and Barclays have expressed confidence in the company’s continued growth trajectory, supported by strategic investments in AI-driven solutions and a stable market position.
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