Thomson Reuters stock rating upgraded to Buy by Canaccord on margin outlook

Investing.com - Thomson Reuters (NASDAQ:TRI) received an upgrade from Canaccord Genuity on Wednesday, with the research firm raising its rating from Hold to Buy while adjusting its price target to $174.00 from $182.00. The stock currently trades at $146.60, near its 52-week low of $145.22, having fallen over 20% in the past six months according to InvestingPro data.

The upgrade follows Thomson Reuters’ third-quarter 2025 results, which showed adjusted EBITDA and EPS exceeding expectations due to cost management, while revenues were broadly in line with forecasts. The company reported $7.32 billion in revenue and $2.06 billion in EBITDA over the last twelve months.

According to Canaccord Genuity, management indicated that full-year organic revenue growth is likely to come in at the lower end of the 2025 guidance range of 7-7.5%, citing headwinds in Global print (25 basis points impact) and some losses in the government sector due to efficiency initiatives (20 basis points).

The company also noted that fourth-quarter 2025 is expected to see somewhat reduced growth in its Corporates segment due to changes in sales processes.

Canaccord highlighted the extension of Thomson Reuters’ 2026 margin increase of 50 to 100 basis points as a key factor in the upgrade decision, with the research firm citing "upside to growth expectations and solid positioning from a balance sheet perspective" as reasons for the more positive outlook.

In other recent news, Thomson Reuters reported its Q3 2025 earnings, demonstrating a 7% growth in organic revenues and a 10% increase in adjusted EBITDA. Despite these positive financial results, the company’s stock experienced a decline. The decrease in stock price coincides with Thomson Reuters’ ongoing investments in artificial intelligence and the completion of a $1 billion share repurchase program. These developments are part of the company’s strategic initiatives to enhance its technological capabilities. The earnings report highlights the company’s focus on long-term growth through innovation. Investors may be interested in how these investments will impact future financial performance. The financial community continues to monitor Thomson Reuters’ strategic moves closely.

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