Intel stock spikes after report of possible US government stake
Investing.com - BMO Capital has raised its price target on Thomson Reuters (NASDAQ:TRI) to $308.00 from $280.00 while maintaining an Outperform rating. According to InvestingPro data, the company currently commands a market capitalization of $94.7 billion and trades at a P/E ratio of 44.2x, suggesting a premium valuation.
The stock has gained approximately 6% this week on potential Nasdaq 100 inclusion, according to BMO Capital. InvestingPro data shows impressive momentum, with the stock delivering returns of 32% year-to-date and nearly 34% over the past six months.
The firm cited Thomson Reuters’ superior fundamentals relative to peers in the Legal and Tax & Accounting segments as key factors supporting the price target increase.
BMO Capital introduced 2027 estimates for the company, projecting continued high-single-digit revenue growth and margin expansion to over 40%.
The firm believes multiple expansion is supported by industry growth momentum, stable end markets, an exceptional balance sheet position, a GenAI product advantage, and consistent execution.
In other recent news, Thomson Reuters has reported a promising start to 2025, with a 6% organic revenue increase in the first quarter, primarily driven by growth in its legal, corporate, and tax & accounting segments. The company saw its adjusted earnings per share rise slightly to $1.12 from $1.11 year-over-year. Thomson Reuters also raised its annual dividend by 10% to $2.38 per share, reflecting confidence in its financial health. Barclays (LON:BARC) analyst Manav Patnaik responded positively to these results by raising the stock’s price target from $200 to $210 while maintaining an Overweight rating. The analyst noted the company’s robust recurring revenue growth and strong profit margins, despite some revenue decline due to product sunsets and foreign exchange impacts.
Furthermore, Thomson Reuters filed a Form 6-K with the SEC, including unaudited financial statements and management’s analysis, providing insights into the company’s financial condition. The filing also included certifications by the CEO and CFO, ensuring the accuracy of the financial statements. The company’s focus on AI and innovation, including the increased use of GenAI-enabled products, has been a significant growth driver. Despite minor headwinds anticipated from non-renewals in government contracts, the company reported a 9% growth in this segment. These developments underscore Thomson Reuters’ strategic focus on innovation and resilience in its revenue streams.
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